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How Should You Franchise Your Business?
Buying a franchise opportunity is not as dangerous as starting your own business from scratch but did you know that most companies that decide to franchise their business concept end up failing. I read an article today that suggested that up to 80% of all new franchisors either fail or end up using another route to expand their market share. Why is this figure so high? I believe that most people do not realise how many hurdles lie in your path when they decide to franchise their business. Having a great business idea is only ten percent of the process. The rest is about sheer effort, marketing, developing processes, creating operators manual, recruitment and then supporting your existing franchisees once they come on board. Finding the right franchisee takes more effort than everything else and is very important in the success of the business model.
Once you have a franchise agreement in place then it will have to be approved by the BFA before you can even start exhibiting at the franchise exhibitions. They also have to approve all your marketing materials including brochures and videos before you can exhibit. The whole process is extremely lengthy and very costly but if you use your noodles you can cut your costs by over 50%. Most of the so called experts charge a fortune for carrying out very basic tasks. If you want to franchise your business the first step is to attend some large franchise exhibition.
Pose as a potential buyer and request all the brochures, marketing materials and operators manuals that you can get hold of. These will then give you a fair idea as to what is required. Once you have received this information then request copies of franchise agreements from businesses that are in a similar business niche as yourself. Bear in mind that they will ask you to sign confidentiality agreements and a few might even ask you to return their franchise packs if you are not interested. It is also important to realise that you can not use their material as they own copyrights to it. What you do though is get a fair idea of what is required in terms of marketing material and how you might word your own franchise agreement. Do as much work as you can your self before approaching any experts. This should help to reduce your legal fees substantially. Again if you have a basic outline as to how you want your brochure to look and feel it will reduce the cost of design. Here's to your success.
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