FRANCHISING
G N I H C N A R B OUT! g success
Ten steps to franchisin
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ow that you have a successful business, perhaps you are considering expanding. One great way to expand is to franchise. Think of all the famous brands that have used franchising to accelerate their growth and build their brands nationally or even internationally. They all built on a business that had already proved itself. Is your business franchisable? Ask yourself the following ten questions to find out.
2. Is there the potential to create a memorable brand?
1. Do I have a proven concept?
3. Do I have access to capital?
For people to be interested in buying a franchise based on your business concept, your concept needs to have a proven track record of success. It’s also important to have an experienced management team. Without this established reputation, nobody will be interested in buying into your concept.
You can’t approach franchising as a way to fund a new business. Don’t even consider franchising if your business is in trouble. You will be expecting franchisees to pay franchise fees, so the business needs to generate enough income for franchisees to pay themselves a decent salary after they have paid you and settled their loan.
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A franchise is nothing without a memorable brand. What makes your brand unique? Will it appeal to consumers across the country? Is there the potential to expand into other countries? If the answer is yes, you might well have a franchisable brand on your hands.
As franchisor, it’s essential that you get professional advice to build a franchise infrastructure.
4. Will my franchise yield a return on investment? You wouldn’t be in business without the prospect of a reasonable return on investment, and your franchisees will have the same expectations. Your investment will be in the development costs; your franchisees will be investing in setting up their individual outlets of your brand. As a rule of thumb, return on investment should be obtained within three to four years.
5. What is my unique selling point? Remember that building a franchise means building a brand. Your brand needs a unique selling point to set it
