Have you got what it takes to become a franchisor?
Franchising a business is often considered the easiest way to grow business. Business owners can scale up their business faster by getting franchisees on board, while they focus on the things that they do best.
Basically, franchising your business consists of taking your brand, systems, intellectual property, and knowledge and duplicating your day-to-day operations and business model so your franchisees can be successful.
Therefore, you must own a successful business to become a successful franchise business.
Here’s a taste of what our consulting services cover with entrepreneurs and executives who are considering turning their business into a franchise.
Identifying the strengths and weaknesses of your business
Before you jump into the franchise industry, there are some things you need to consider before deciding if your business is franchise ready:
Considering what makes your business unique within your industry
If you are considering franchising your business, then you need to make sure that it is unique, with strong branding that sets it apart from its competitors: Does your business differentiate from its competitors? Is it marketable as a business opportunity? Is your unique selling proposition solid?
Estimating the cost of switching to the franchise model
Like any business, you must budget to achieve your goals. You’ll need to consider: What is the cost to launch a franchise system with an infrastructure that is unique to your business and designed to achieve growth? What are the ongoing costs of marketing and legal registrations?
Evaluating the potential returns for franchisees
To attract suitable franchisees to invest in a franchise opportunity with your company, you must be able to demonstrate that they have the potential to make an attractive return. Typically, this should be at least 15% to 20% on their investment by the third year at the latest.
Understanding what comes after you franchise your business
You need to be clear on your personal and business goals. Do you envisage that your role in the business will change? Are you ready to grow the reach of your brand, support new franchisees, and create a corporation that will eventually become bigger than your current team?
Prepare to take advantage of the benefits of becoming a franchisee
When you become a franchisor, by preparing well and accepting advice and help on your journey you will prepare to take advantage of the many benefits of franchising your business. These include:
Potential for faster expansion
Proud, talented, committed, and highly motivated franchisees
Increased purchasing power
Steady cash flow from royalties
Successful locations can return high royalties
Improved efficiency and higher quality levels
- Ideas for future success
Are you considering franchising your business, or seeking potential franchisees for your business? Don’t leave your success to chance. Contact New Ground Consulting or sign up below to benefit from our direct franchise industry experience.