Should I franchise my business?
So you have a trading and successful business in your local area and are considering all options, considering franchising and ask yourself should I franchise my business? Well in that case you need to understand the pros and cons of franchising first before you start down the road franchising the business
Franchising is a great way to grow a small business for many reasons. It can take a small business and rapidly propel it into a national, even multi national organisation. For example franchising in the UK is reported to be worth over £15bn a year to the UK economy.
Franchising is replicating an already succcessful trading brand and operation through documentation, training and supporting incoming Franchisees ( the people that invest in your franchise ) and as such is competely different to growing a business organically.
When you grow a business organically you expand by raising finance using the business and/or personal assets, perhaps expand with additional premises, take on more staff & marketing etc. You are completely in control of the entire business and all risks and all rewards start and end with you.
When you franchise a business the model is compeltely different. Incoming investors or Franchisee’s usually, but not always buy an exclusive area to trade and in their franchise fee’s is included everything they need to get started in their local area. The support does not start with set-up & training but the level of support needs to be extremely high ongoing, particularly in the first year when the Franchisee is getting the business off the ground. Unlike the organic model you are not in control of everything day to day, the Franchisee is an independant business, you cannot hire and fire their staff and they could have made a significant financial investment in your brand and therefore are a partner, not an employee.
Here are a few important considerations although if you are asking yourself should I franchise my business we would advise you book a more thorough review with one of our franchising experts, to arrange simply complete the form below to arrange a free initial consultation;