Frequently Asked Questions... What exactly is Franchising? Business Format Franchising is a system in which the original business (the Franchisor) grants the rights for a third party (the Franchisee) to trade using the name of the Franchisor using the same systems and methods that the Franchisor has used successfully in the original business. What is the difference between Franchising and Licensing? The line between licensing and franchising can be very fine. A licensed opportunity typically does not provide organized training, support, marketing and ongoing assistance. The biggest difference is that as a licensed opportunity all control is lost, you cannot even require licensees to use your name and marks. Franchising has a much greater deal of control by the franchisor, especially when it comes to providing consistent products and services. What do I really need to do before choosing to Franchise my business? Conduct as much research as you can into Franchising · Try to understand the advantages and disadvantages of franchising · Know the strengths and weakness of your own business. · Ask yourself how you are going to sell your business to franchisees · Put yourself in a prospective franchisees shoes and see what would attract them · Examine yourself and ask if you really really want to run a much bigger business How do I know if my business will succeed as franchise? It is often said that any business that needs or can support a branch structure to expand the business is capable of being franchised. However, in reality, not every business is able to make the transition to a franchise. Some businesses succeed because they fill a market niche in a specific geographic location. This same business might not be profitable in a different market. Some businesses succeed because the owner has a lot of personal contacts. If we cannot replicate successfully the sales and marketing systems you employ, then it certainly will not be a viable franchise. The best way to learn about your business' franchise potential is to give us a call and tell us about your business, and your expansion plans. Does Your Business Have What it Needs To Be A Successful Franchise? There are thousands of franchises available across the world but what characteristics need to be in place before a company embarks on franchising? More importantly, what sets apart the average from the great? We believe there are 5 'Success Keys' that must be in place if a business is going to transform into a successful franchise. As always you need to put your feet in the shoes of a potential franchisee looking to invest their hard-earned money into the franchise… 1. They must have a profitable business - many business owners embark on franchising as a way out of trouble. As a result any planned franchise inevitably fails. Having a good profitable business has to be the most important factor before franchising is even considered. 2. Unique - having some element of uniqueness differentiates the business from competitors and is an important ingredient to the sales and profits of franchisees. 3. They must have proven sales and marketing strategies in place - even the best product or service in the world won't sell unless a raft of proven sales and marketing strategies are in place. 4. Systematic - in essence a franchise is a 'proven business system'. It therefore stands to reason that the business must have a systematic approach to running the business. 5. Does the owner have the vision and drive to run a much bigger business? If a business has each of these 5 attributes in place, then creating a successful franchise, although never easy, gives the franchise a huge edge over others who do not. Why do I need a consultant to help me? I know my business best! The main reasons for using a consultant are: · No-one expects you to know how to franchise a business - it's a complex project to create · Who will run the core business that currently makes you money whilst you are learning how to franchise your company? · How much time and energy are you going to waste in the learning process? This is precisely why someone buys a franchise -speed and a solution from an expert. Why franchise rather than grow organically? Of course you can use your money opening satellite locations and hiring employees - with all the hassle of employing people across vast distances who do not care about your business. You also end up having to employ more people to manage and supervise those branch staff. On the other hand, why not use the resources of an entrepreneur who has skin in the game, to brand your business using their money? As a Franchise system you maintain control and it is the optimal way to grow. What are the advantages of franchising? There are many advantages: · Self Financing · Highly Motivated Franchisees · Rapid Growth · Low Financial Risk · Quality Control · Low staff turnover · Long term business · International growth feasible · Not managing huge volumes of people · Low central overheads · No need for huge field management · Brand Builder · Bigger Advertising budget · Unit Performance better · Greater negotiating power with suppliers · Reduced Vicarious Liability · Reduced Contingent Liability · Greater value when you come to sell the business · Guaranteed royalty commissions · Control over how products are sold What are the disadvantages of franchising? There are some disadvantages: · Can be hard to recruit franchisees · It will not make a poor business into a success · Poor quality of franchisees · Franchisees not declaring all their income · Poor performance by franchisees · Good management team required I want to take my franchise outside of the UK. What can you do to help me? We are affiliated to a highly succesful franchise consultancy in North America - Davier Consultants. So if you want to go the the USA, which is the biggest market in the world, then we can help you. We can also help you in many other markets in Europe and across the globe through our affiliation with Davier Consultants where we have reciprocal arrangements with other franchise consultancies. What do I have to do next? If you are serious and dedicated to franchising your business, then all you have to do right now is... · Contact us now for a completely free no obligation meeting to discuss your plans. View Site Map