Franchising - How hard can it be?
Why do people franchise? In Australia, the franchising industry employs over 650,000 people and contributes to over $150 billion in revenue to the Australian economy.
Business Development Alliance explores the reasons why Australians choose to franchise and the benefits in being part of a franchise network.
Other than the advantage of owning a recognised brand, franchising allows a business to grow much faster than others. In the 08-09 financial year, the three fastest growing franchise networks had grown by over 200%.
Most business owners do not have the capital to open several outlets. However in franchising franchisors can provide franchisees the opportunity to grow their capital.
Before diving in head first to find a franchisee, there are a few things that need to be considered. For a franchisee to invest in the business, they will need to be reassured that they are making a sound investment that will earn a good return. How do you prove this to potential franchisees?
The first step is to consider: what makes your business different from its competitors? And does this unique selling point translate into strong profits? This is one of the most fundamental aspects to a franchise network.
The second step is how the business operates, does it have structures and procedures in place to ensure best practise? Does it have a sound operations manual that will allow any franchisee to run the business in the same way as the franchisor? Will there be a strong support network for franchisees?
Of course, it is important to be selective when choosing a franchisee but remember they will also be as selective too. As long as the franchise has a solid business structure, it will attract quality franchisees. Once a business can achieve this, the opportunities are virtually unlimited.
For more franchise advice and consulting from Business Development Alliance, ask them a question or send them an e-mail.