Franchising your business
Business format franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade as their own business under the brand of the franchisor, following a proven business model. The franchisee also receives a package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis (including a predetermined agreement length – with renewal options).
Franchising can not only strengthen the brand and reach of a company, but it can also act as a very good method of securing its future, but only if done well.
The first thing to understand is that franchising is not a tool to fix a bad business. It is not there to provide injections of income from other people to underpin a failing elsewhere. Franchising is a model used to replicate a successful and proven business, using the investment and skills of new individual business owners, who will be trained and supported to run the business under the agreement, conditions and format, as proven and agreed.
Franchising encompasses a multitude of business types and consumer markets and has well established itself as a respected and highly regarded business model.
To franchise a business is not something that can be done without thought. To start with, the business needs to be proven – you need to show potential franchisees that the business works in the way in which they will need to run it. It also needs to be transferable, so that it can be run in multiple locations, using the same system, brand and quality. As a key point in this, the franchise also needs to be something that you can teach people to do. There is little point having a franchise that only one person in the world would be capable of running. You then need to make sure it is protected, by ensuring you have all the correct documents to secure your brand with any appropriate legal advice.
Find out what you really need to know: Attend a franchise seminar
Ensure you get the right advice with accredited professional franchise advisors
For more general information about franchising visit: About franchising