5 TOP TIPS FOR FRANCHISING YOUR BUSINESS
Franchising gives you, as a business owner, the opportunity to grow your business. However, choosing whether or not to franchise your company can be a difficult decision to make. So, to help you decide, and to give you some guidance on how to make it a success, here are five tips for franchising your business.
1 . CREATE A FRANCHISE MODEL THAT WORKS FOR YOU
Some business owners run their companies according to a bespoke set of processes, developed over a long period of time. If that works for you, great. However, as a franchisor, you need to make sure your franchisees have clearly defined plans and procedures in place. From health and safety regulations, to promotional campaigns, to day-to-day operations, you need a consistent template that they can follow. As a franchisor, it’s important that your plans and policies are clear, concise, and simple to replicate.
When creating your franchise model, you should consider the systems that have made your business a success. So, while putting together your franchise plan, it’s worth calling upon the knowledge and experience of industry experts. It’s that guidance and support that could professionalise your approach. Furthermore, the better service providers will conduct thorough feasibility studies to prepare your model for the market.
2 . MAKE SURE YOUR BUSINESS IT SET UP TO SUCCEED
Turning your business into a franchise can be extremely rewarding, but it’s a decision that could represent a real sea-change for your company. As detailed above, the procedures that you’re used to will need to be standardised, incorporating the needs of new franchisees. This is so that things like prices, and operational protocol, can be duplicated relatively easily.
This may also involve the ‘registration of your intellectual property’. By protecting your IP, you’ll safeguard against the potential theft and exploitation of your brand, innovations and clientele.
Just as importantly though, is having a defined vision for your franchise. It’s vitally important that you communicate that, as effectively as possible, to your franchisees. By sharing your goals and ambitions with your franchisees, they’ll feel more invested in the brand and the project, developing a trusting and transparent culture, which will serve you well in the long run.
Did You Know … Franchising first appeared in the UK with the advent of the tied pub system. And, from General Motors in the early 1900s, to fast-food outlets like McDonald’s and KFC, the franchise industry has been on an upward trajectory ever since. In the UK alone, the industry now turns over more than £17billion, employing 710,000 people nationwide.
3 . TAKE CARE WHEN SELECTING YOUR FRANCHISEES
No doubt, you’ll be cautious about relinquishing autonomous control over your company. It’s completely understandable. That’s why you need to make sure the people you’re bringing into your business – the franchisees – are going to help, not hinder, your franchise’s growth. Prospective franchisees need to fit the existing ethos and culture of your business, and vice versa.
The relationship between the franchisor and franchisees is a long-term one. After all, you’re investing both time and money into an individual you may know little about. So:
- Take your time with the recruitment process.
- Be consistent with each franchisee in your network.
- Do your due diligence and make sure you’re up-to-speed with your franchisees’ financial status.
- Select people who will suit your system, while bringing their own unique attributes to the table.
BONUS TIP: ‘TRUST YOUR INTUITION’
Fiona Simpson is the Founder, Franchisor, and Managing Director at ARTventurers. We asked Fiona, ‘Woman Franchisor of the Year’ at the 2018 EWIF Awards, to give us her ‘top tips’ for those who are looking to start a franchise.
“One big lesson I’ve learned is to trust my instinct when it comes to decision making,” she said. “It’s important to have a clear idea of your franchisee targets when constructing your franchise package, before looking into recruitment.”
“It’s crucial to have a clear business vision, and to make sure that you share it with your team. Therefore, it’s important that your franchisees understand your goals for the business and everyone works together to achieve those objectives.”
You can read more from Fiona, and her advice for aspiring franchisors, here.
4 . BE PREPARED TO INVEST YOUR TIME, AS WELL AS YOUR MONEY
To ensure the success of your new franchise, more of your time is likely to be taken up with the training and coaching of your franchisees. Remember, your franchisees are unlikely to have the same business background as yourself. Less so the same depth of industry or company knowledge.
The better the training you provide for your franchisees, the better the benefit for both parties. So, if you’re thinking about franchising your business, it’s important to consider your role and how it may change. Your franchisees will require your patience and guidance, potentially leaving less time to complete the day-to-day tasks you’re used to.
Franchising a business is going to cost money, so make sure it’s a worthwhile investment for you. Progress can take time, and it can be more about quality, than quantity. The involvement of marketers, franchise consultants, and legal people, as well as the time it can take to start selling branches, can make ROI difficult to come by, particularly in the short-term. The financial aspect of a franchise can also be confusing, not to mention burdening, for new franchisors. This is where tip number five might come in handy …
5 . FIND YOURSELF A SPECIALIST FRANCHISE ACCOUNTANT
If you’re looking to grow and develop your franchise, consistency and industry expertise are key. Your franchisees need to be working towards a common goal, with a service provider who can handle the demands of a national network.
At Danbro, we’ll deliver the quality and consistency that you deserve. You’ll be assigned a personal accountant, someone who’ll take the time to understand your franchise. They’ll help you measure performance levels and share best practices across your network. Our experience, and outstanding track record, highlight our ability to improve your franchise’s performance and drive revenue. We provide high-quality, industry leading training on everything from taxes and accounts to specialist programmes and software.
Click here to find out how Danbro can help you fast-track your franchise. We’ll understand, deliver and grow together.
