How to Franchise your Business
How to Franchise your Business
• A proven business that is profitable and is not fashion or fad dependent. The business concept must be able to stand the test of time.
• An operations manual in place that documents what your business does and how it is operated at every level. This will be the basis of your Franchise operations manual.
• Capital to invest in setting up and developing a Franchise network.
• A distinct and trade marked logo that the company owns.
Initial Research
The British Franchise Association hold regular seminars on what to consider when thinking about Franchising your business. Attendance incurs minimal cost and covers essential Franchise issues.
Business Plan
How much does it cost to set your business up as a franchise?
It is not cheap and not to be taken lightly. However, over 750 businesses are recognised by NatWest and the British Franchise Association (BFA). Therefore many companies have taken this step and are growing their businesses via franchising.
When building your business plan you need to consider the costs of the following:
• Route to funding
• Legal
• Advertising
• Marketing collateral
• Consultancy
• Staffing
• Office space
• Revenue from franchisees
Funding
When you are looking for funding it is advisable to work with one of the main banks that have specialised Franchise departments. Currently in the UK the following banks have specialised franchise departments:
• Nat West
• HSBC
• Lloyds TSB
• Bank of Scotland
• Royal Bank of Scotland
These departments have up to twenty six years of trading and expertise in the Franchise arena. It is advisable to contact these departments directly for advice from one of their experts.
Consultant
Generally speaking there are two types of new Franchise business.
1.Unhappy and frustrated – these are generally those that went to market without the assistance of an accredited British Franchise Association Consultant.
2.Focused and progressive – these new Franchisors have invested in the assistance of an accredited British Franchise Association Consultant.
Engaging the services of an accredited franchise consultant does not come without cost. However, the good consultant is worth their weight in gold as they will help you prepare a route map to market which should help you avoid many costly pitfalls.
Operations manual
One of the first jobs you will tackle with your Franchise consultant is the writing of your operations manual. Your operations manual is called your ‘intellectual property’. This document is in essence the basis of your franchise offer. The ops manual outlines how to set up and successfully replicate your business by a third party. This document is therefore highly valuable and is the key to your Franchisees running successful businesses.
People buy a Franchise so they can go into business with reduced risks of commercial failure. They will rely on the ops manual and the training and support you give them to replicate your successful formula.
This document must be protected as it holds all your secrets – it is the foundation of your franchise proposition.
Legal
Generally speaking there are two types of Franchise contract.
1.Written from a standard template or a general lawyer – usually this is the type of contract that you could drive a bus through and is an accident waiting to happen.
2.Written by a British Franchise Association accredited lawyer – usually this will be a well prepared document that will work in your favour should occasion arise to protect your business, brand and intellectual property.
Again you will not find a specialist Franchise lawyer to be cheap but the benefit of getting your legal documents right from the outset could literally save your business in the future.
Staffing
When considering staffing for Franchise development you need a key member of staff on your team that has proven success at recruiting, training and supporting Franchisees. There are a limited of executive search companies that are accredited by the British Franchise Association. These will probably be the best route to finding your essential team member.
Launch and Advertising
Plan your launch carefully. There are several types of media that you can use to launch and advertise your franchise. These include on line portals such as www.selectyourfranchise.com, daily newspapers such as the Daily Express and several franchise exhibitions run by Venture Marketing.
Recruitment
It takes time to recruit, train and launch a Franchisee into business. It can be anything from a couple of months to a year depending on a number of factors such as funds and finding trading premises. This is especially the case with retail premises. This needs careful consideration when planning your start up cash flow.
On average there will be around two out of every one hundred prospects that will convert into Franchisees. A Franchise lead costs in the region of £30 to generate. Advertising costs to recruit may be in the region of £1500 per Franchisee recruited provided costs and conversion match figures mentioned above.
As previously mentioned people buy a Franchise because they want to be self employed and reduce the risks of commercial failure. A well structured and proven Franchise system offers a way to market through a proven formula. It also adds value and reduces the risk to self employed business owners. Franchisees are therefore not entrepreneurs but rather followers or disciples of a proven system.
Revenue from Franchisees
It takes time for a new Franchisee to generate revenue from their business. The Franchisor’s income from the Franchisee is a percentage of turnover. Therefore you must consider this when planning revenue predictions in your business planning.
Ongoing System Development
So that your Franchise business network can grow and prosper, it is vital that all Franchisees meet their and your expectations. Any information provided through the recruitment and training process should be fulfilled in the Franchisees trading experience. Be careful not to over promise in your recruitment efforts as this will lead to problems in the future.
Taking on Franchisees is a long term two way commitment. Developing a successful Franchise network is like developing a successful marriage. It has promises and expectations involved on both sides. For the relationship to work both sides must give and receive and want to make the relationship work.
Accreditation
It is advisable to investigate how to become accredited by the British Franchise Association (BFA) as soon as possible. Your BFA accredited consultant will help you prepare your Franchise with application to the BFA in mind. The BFA have high entry standards for accreditation. Accreditation is therefore not just for those who can afford it but principally for those that deserve it.
Summary
In closing it can be seen from the last quarter of a century that Franchising can be a successful way of growing a businesses brand, trading locations and profitability. Franchising is not a system that will save an ailing business. It is a way of replicating a successful business for the benefit of Franchise owner and Franchisee. There is no quick route to successful Franchising. It is a long process with potential financial benefits for the medium and long term for both franchisor and franchisees alike.
Article by Nick Strong MD Select Your Franchise UK Ltd
Select Your Franchise UK Ltd offer advertising and lead generation for Franchisors via www.selectyourfranchise.com . Select Your Franchise offers Franchisee recruitment training to UK and overseas Franchisors wishing to trade in the UK.
How to Franchise your Business - To learn more about this author, visit Nick Strong's Website.
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There are key considerations you should make before starting the Franchise process. You must have:
• A proven business that is profitable and is not fashion or fad dependent. The business concept must be able to stand the test of time.
• An operations manual in place that documents what your business does and how it is operated at every level. This will be the basis of your Franchise operations manual.
• Capital to invest in setting up and developing a Franchise network.
• A distinct and trade marked logo that the company owns.
Initial Research
The British Franchise Association hold regular seminars on what to consider when thinking about Franchising your business. Attendance incurs minimal cost and covers essential Franchise issues.
Business Plan
How much does it cost to set your business up as a franchise?
It is not cheap and not to be taken lightly. However, over 750 businesses are recognised by NatWest and the British Franchise Association (BFA). Therefore many companies have taken this step and are growing their businesses via franchising.
When building your business plan you need to consider the costs of the following:
• Route to funding
• Legal
• Advertising
• Marketing collateral
• Consultancy
• Staffing
• Office space
• Revenue from franchisees
Funding
When you are looking for funding it is advisable to work with one of the main banks that have specialised Franchise departments. Currently in the UK the following banks have specialised franchise departments:
• Nat West
• HSBC
• Lloyds TSB
• Bank of Scotland
• Royal Bank of Scotland
These departments have up to twenty six years of trading and expertise in the Franchise arena. It is advisable to contact these departments directly for advice from one of their experts.
Consultant
Generally speaking there are two types of new Franchise business.
1.Unhappy and frustrated – these are generally those that went to market without the assistance of an accredited British Franchise Association Consultant.
2.Focused and progressive – these new Franchisors have invested in the assistance of an accredited British Franchise Association Consultant.
Engaging the services of an accredited franchise consultant does not come without cost. However, the good consultant is worth their weight in gold as they will help you prepare a route map to market which should help you avoid many costly pitfalls.
Operations manual
One of the first jobs you will tackle with your Franchise consultant is the writing of your operations manual. Your operations manual is called your ‘intellectual property’. This document is in essence the basis of your franchise offer. The ops manual outlines how to set up and successfully replicate your business by a third party. This document is therefore highly valuable and is the key to your Franchisees running successful businesses.
People buy a Franchise so they can go into business with reduced risks of commercial failure. They will rely on the ops manual and the training and support you give them to replicate your successful formula.
This document must be protected as it holds all your secrets – it is the foundation of your franchise proposition.
Legal
Generally speaking there are two types of Franchise contract.
1.Written from a standard template or a general lawyer – usually this is the type of contract that you could drive a bus through and is an accident waiting to happen.
2.Written by a British Franchise Association accredited lawyer – usually this will be a well prepared document that will work in your favour should occasion arise to protect your business, brand and intellectual property.
Again you will not find a specialist Franchise lawyer to be cheap but the benefit of getting your legal documents right from the outset could literally save your business in the future.
Staffing
When considering staffing for Franchise development you need a key member of staff on your team that has proven success at recruiting, training and supporting Franchisees. There are a limited of executive search companies that are accredited by the British Franchise Association. These will probably be the best route to finding your essential team member.
Launch and Advertising
Plan your launch carefully. There are several types of media that you can use to launch and advertise your franchise. These include on line portals such as www.selectyourfranchise.com, daily newspapers such as the Daily Express and several franchise exhibitions run by Venture Marketing.
Recruitment
It takes time to recruit, train and launch a Franchisee into business. It can be anything from a couple of months to a year depending on a number of factors such as funds and finding trading premises. This is especially the case with retail premises. This needs careful consideration when planning your start up cash flow.
On average there will be around two out of every one hundred prospects that will convert into Franchisees. A Franchise lead costs in the region of £30 to generate. Advertising costs to recruit may be in the region of £1500 per Franchisee recruited provided costs and conversion match figures mentioned above.
As previously mentioned people buy a Franchise because they want to be self employed and reduce the risks of commercial failure. A well structured and proven Franchise system offers a way to market through a proven formula. It also adds value and reduces the risk to self employed business owners. Franchisees are therefore not entrepreneurs but rather followers or disciples of a proven system.
Revenue from Franchisees
It takes time for a new Franchisee to generate revenue from their business. The Franchisor’s income from the Franchisee is a percentage of turnover. Therefore you must consider this when planning revenue predictions in your business planning.
Ongoing System Development
So that your Franchise business network can grow and prosper, it is vital that all Franchisees meet their and your expectations. Any information provided through the recruitment and training process should be fulfilled in the Franchisees trading experience. Be careful not to over promise in your recruitment efforts as this will lead to problems in the future.
Taking on Franchisees is a long term two way commitment. Developing a successful Franchise network is like developing a successful marriage. It has promises and expectations involved on both sides. For the relationship to work both sides must give and receive and want to make the relationship work.
Accreditation
It is advisable to investigate how to become accredited by the British Franchise Association (BFA) as soon as possible. Your BFA accredited consultant will help you prepare your Franchise with application to the BFA in mind. The BFA have high entry standards for accreditation. Accreditation is therefore not just for those who can afford it but principally for those that deserve it.
Summary
In closing it can be seen from the last quarter of a century that Franchising can be a successful way of growing a businesses brand, trading locations and profitability. Franchising is not a system that will save an ailing business. It is a way of replicating a successful business for the benefit of Franchise owner and Franchisee. There is no quick route to successful Franchising. It is a long process with potential financial benefits for the medium and long term for both franchisor and franchisees alike.
Article by Nick Strong MD Select Your Franchise UK Ltd
Select Your Franchise UK Ltd offer advertising and lead generation for Franchisors via www.selectyourfranchise.com . Select Your Franchise offers Franchisee recruitment training to UK and overseas Franchisors wishing to trade in the UK.
How to Franchise your Business - To learn more about this author, visit Nick Strong's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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