Real Business:
First, a definition. Business format franchising is ‘a commercial relationship whereby one party allows another to operate clones of a proven business system, and provides initial and ongoing training and support in doing so, in return for initial and ongoing fees’. So, if you have a business, which can be operated as a branch network that you want to expand, you should certainly consider franchising as one of the options.
Here are your first three big tips from Duckett, whose firm advises prospective and current franchise operations on how to get big and get rich, fast.
1. Become a local, regional or national brand
Provided your business meets certain criteria, such as being successful, profitable, easily duplicated and easily learned, then the chances are you can franchise it. You will need expert practical and, eventually, legal advice to set things up properly, ensuring that the opportunity will be profitable for both parties, but you could then find yourself opening more outlets, more quickly, than you ever could have afforded by growing organically. Franchisees provide the finance to open new outlets, and the energy along with enthusiasm to operate them.
2. Become an international brand
Many businesses that are reaching capacity in their home markets, whether or not they operate under a franchised system, take their operation into international markets by appointing master franchisees, or area developers, to operate branch networks in their respective countries. Profiling and choosing the right partner in another country is a critical function of the process but it has resulted in significant international growth for businesses in all sorts of sectors.
3. Regional or area development
Regional or area development is a franchising method, which can be used domestically or internationally. Rather than having one franchisee per outlet, you take on a person or existing business, which has the wherewithal to open and operate a number of outlets within a specified geographical area. The number of outlets will vary from system to system, it could be five, it could be fifty, there is no generic ‘right answer’ but expert advice can point you in the right direction.
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[…] Virtual Entrepreneur: First, a definition. Business format franchising is ‘a commercial relationship whereby one party allows another to operate clones of a proven business system, and provides initial and ongoing training and support in doing so, in return for initial and ongoing fees’. So, if you have a business, which can be operated as a branch network that you want to expand, you should certainly consider franchising as one of the options. […]