A. Roger Jennings writes:
Franchising can be a very powerful business strategy to secure additional profit flows and market share, provided that your company has the structure, performance and potential ‘added value’ to appeal to other businesspeople.
First, you have to be realistic in evaluating if your business is suitable as a franchise model. There are a number of questions you need to ask yourself. Is your underlying business profitable? What is the ‘unique ingredient’ in your business model/brand that makes it distinct from competition and capable of attracting more customers?
Is your know-how transferable or is all the expertise currently in one person’s head? Are there additional territories or markets available, and are you willing to forego your direct investment in those markets over the coming years?
Having done this detailed evaluation, the next step is to produce a viable business proposition for a franchisee, together with an outline business plan and ongoing support. You are then in a position to find and sell the proposition and concept to interested parties. Assessing who exactly these might be requires a review of the available markets – for example, are you planning to offer exclusive territories?
Given that you are entrusting your brand and business know-how to others, attracting the right franchisee can be challenging. There are many ways that potential franchisees can be recruited, from industry events to traditional print adverts. But if you are looking to attract qualified prospective franchisees, focused marketing and public relations can play a crucial role. PR, in particular, can both promote the strengths of your business proposition, as well as attract qualified leads to convert into franchisees.
Of course, developing the franchise model and appointing a franchisee is only the start. To make the franchise successful you must ensure that your expertise is effectively transferred, as well as ensuring franchisees and their staff are trained to run the franchise according to the standards you have set. The support you give must be ongoing in terms of new developments and assistance when problems arise.
Franchising is not for everyone or every business. But it is a strategy that can give huge rewards and turn a local business into an international business.
An experienced chief executive, Roger Jennings has enjoyed a successful career running and advising numerous major businesses, including Austin Reed and Lee Cooper.
www.limelightpr.co.uk