Growing through franchise is particularly suited to companies that have a model which is easily transferable and has a process to follow for making a profit. For example, dance activities for children or tasting parties for food fans. The aim is to perfect a model that works in one area and then grow by enabling others to replicate it.

Here's a checklist so you are prepared when interested franchisees come to call.

Track Record

Ensure the business is a working model of success. Franchisees will pay money for something they can see has a clear path to profit. Be prepared to make your own accounts public or at least show what the franchisee can expect to earn if they follow the training and guidelines. The brand is also an asset that’s being bought so ensure you rightfully own it with trademarks and intellectual property protection in place.

Training

The business model is something that has to be teach-able i.e. you can train people (some of whom may be quite new to business) on how the operation works.

Toolkit

After training provide a comprehensive toolkit or manual that guides the franchisee with tips on marketing, sales, finance and growing the business. The toolkit could also include marketing templates or collateral such as posters, stickers, flyers etc.

Technology

Does the franchise involve a website for serving customers or intranet platform for accessing internal support? Either way, deliver an easy-to- use system with effective data collection so you can track progress and performance.

Team

Have you got the right team in place; a support resource for franchisees and support for you, the business owner, in the form of a mentor or adviser.

Territory

Is your franchise opportunity restricted to a certain territory i.e. a franchisee pays to have access to a particular geographic area? If so, define this from the start.

Testimonials

Consider doing deals in the early days so you can expand quite quickly. This will be a factor in future recruitment as potential franchisees will probably ask to speak with existing ones. Have some quotes available to offer.

Termination

Put provisions in place to terminate the agreement if it’s not working – from either side!

Goingforgrowth 2

This is an excerpt from ‘Going for Growth – how to grow your business on a budget’ by Enterprise Nation founder, Emma Jones. 

The book comes out in April. Be the first to receive and pre-order your copy now!

Have your say

Julie Waites
Julie Waites

Really interesting article and franchising is definitely growing both in the business and not for profit sector (inc social enterprises). The Franchise Company have been advising companies on all aspects of franchising for over 25 years so please do get in touch if you need any advice or information. This includes details of forthcoming franchise exhibitions.

Sara Jobling
Sara Jobling

Useful article. Given me some food for thought about how to expand my business because by it's nature my business is limited to my time and geographical reach. Franchising makes sense for expansion of my business into areas that i I couldn't physically reach to teach yoga.

Sara Jobling
Sara Jobling

Useful article. Given me some food for thought about how to expand my business because by it's nature my business is limited to my time and geographical reach. Franchising makes sense for expansion of my business into areas that i I couldn't physically reach to teach yoga.

David Nelson
David Nelson

The next 10 years will see a significant trend in the UK towards the greater use of franchising as a business model for both individuals looking to work for themselves but not by themselves, and for compnies looking to grow via a lower risk option. The Business Clinic Franchising Organisation can provide bespoke consultancy to assit in the development of frnachised business in the North West.

mark holland
mark holland

Emma has created a good list of the basics needed to be in place however one important point she, and many people forget is brand protection. Before you look to franchise any business and let someone use your brand make sure you have it protected.

For more info on this or any other element of franchising feel free to get in touch markh@thefranchsingcente.com

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