You’ve built an outstanding business. Wouldn’t it be good if you could
leverage that success to take your business to the next level? Franchising
could be the answer.
To become a franchisor, you need to be more than financially successful. You
also need a business model that enables others to repeat that success and
transport it to different locations. And there needs to be sufficient demand
for your product or service, so that the business can support you and your
franchisees as profitable entities.
Systems, systems, systems
Systems are the essence of franchising. Your business needs to run on a
series of precise, well-documented systems that can be easily followed by
franchisees.
Part of the appeal to franchisees is they don’t have to start from
scratch.
If your business is successful, chances are you’ve got efficient systems in
place. For franchising you need to fine-tune them and create manuals that are
easy to follow. And stay flexible — if you discover a better way to do
something, update your systems.
When setting up your franchise system, establish a program that considers
everything from where your franchises will operate to product supply, training
and support, fees and advertising levies, plus the legal agreement between
yourself and franchisees.
You’ll need the advice of professionals, including a solicitor with
franchise experience and an accountant, as well as your banker. If you’re
working with a franchising consultant, they’ll also be able to offer you
further insights.
Franchisees: find the right people and keep them happy
Poor franchisee choice and training are key reasons for franchises failing.
Being a franchisee takes a lot of motivation and self-discipline. So you’re
looking for people with the commitment to make the franchise work. If your
system is simple to teach and easy to follow, a franchisee who is determined
should acquire those skills very quickly.
Once you’ve found the right franchisees, it’s essential you keep them happy.
You need to provide ongoing support, and should resolve any issues quickly and
openly.
Up and running? Don’t stop now
Like any business, your franchise needs constant attention. As well as
making sure your franchisees have the support they need, you also need to
monitor their performance. Don’t take your eye off the bottom line. You should
also continue to develop your products or services, and upgrade your systems
when appropriate.
Getting help
As always, expert advice is invaluable. The Franchise Council of Australia
is a good starting point. They can help you to locate an experienced
franchising consultant who can help you make your vision a reality.
Where to find out more
