Find Out if Franchising is Suitable for your Business

Franchise Your Business:

A business ‘partnership’ in which one party permits the other ‘partners’ to replicate a proven business system, operating under a common brand, in return for initial and on-going fees. It allows a third party to legally copy your business in exchange for an upfront payment and on-going management services fees.

Is Franchising suitable for your Business
By Daniel Kidd

A business ‘partnership’ in which one party permits the other ‘partners’ to replicate a proven business system, operating under a common brand, in return for initial and on-going fees.

It allows a third party to legally copy your business in exchange for an upfront payment and on-going management services fees.

To franchise a business you need the following factors

• Sufficient development capital to establish a franchise system
• High enough margins to share
• Existing business network or ‘pilots’
• Easily transferable knowledge
• Identifiable brand or trademark
• Expansion requires investment into property, equipment and staff

The Benefits

• Franchise fees will generate a stream of capital income and ongoing revenue
• A loss of profit margin will be offset by much larger overall revenues
• Motivated franchisees ‘running their own businesses’ will generate higher per unit income than employees

What can be franchised?

• Very diverse range of businesses
• Proven business systems capable of replication
• Profitable businesses financially viable for both parties and financially secure
• Steady or growing demand for your products or services
• Simple business formats that are easy to learn
• Identifiable brands and trademarks with your own distinctive image or concept

Undertake a SWOT Analysis of your brand

Trading History

• How long have you been in business?
• What is proven?

Profit Margins

• Are these above average industry benchmark?
• Is there enough margin for two?


• How big is your market?
• How volatile is your market?
• Does it have mass appeal?


• Is there consumer acceptance of your product?
• Is your product or service easy to sell and deliver?
• Quality record?


• Is your Intellectual Property protected?
• Is there a unique and distinguishable marketing approach?
• What is your reputation in the market place

Business Management

• Do you have the management skills and capacity to create a new culture?
• Is your business professional and well presented?
• Is your management financially skilled?
• Do you have well documented processes and systems in use?
• How is Information Technology used in your business?
• What is your attitude to risk?
• Is there a commitment to research and development?

Franchise Opportunity

• Do you have sufficient access to development capital to fund growth?
• Are there similar franchises already on the market?
• Will the franchisee be able to control their costs?
• What will be the minimum term?

Reasons for failure

• Growing too fast too soon
• Franchising for the wrong reasons
• Lack of planning
• Selecting the wrong franchisees
• Lack of infrastructure and support
• Failure to take proper advice

Review your SWOT

Do you have the key criteria you need to franchise

• Developed systems of operation and staffing
• Defined image and clear market position
• Proven and successful business model
• Sustainable market and source of ongoing clients
• Easily duplicated management systems
• Profitability for both parties
• Mutual respect and support – partnership
• Will your operating experience and culture allow you to develop a franchise operation?
• Are your products or services suitable for franchising?
• Is your Brand sufficiently well developed and strong enough to deliver a worthwhile advantage to a franchisee?
• Is your financial position strong enough to support a franchise network?
• Is your business system provenFind Article, robust and capable of being learned by a franchisee?

Daniel Kidd writes about a range for business and franchising topics. For more information please visit Coach Franchise.

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Franchise Your Business:

The Ideal Personality Type for a Successful Franchise


Sean Green

Are you a business owner? Or perhaps looking to be one? Then this article is for you.

There are many factors that contribute to a fantastic franchise. One of the most crucial is the people who run the franchise. Successful individuals in the franchising field have been found to exhibit personal traits which can be categorised into four (4) major groups. These groups comprise leadership, interpersonal, decision making and time management skills.

Leadership Skill

When it comes to leadership, being able to influence people effectively is key. A leader must be able to take charge of a situation and express himself/herself directly, and apply appropriate force when necessary. He/she can listen to perspectives of others in a reasonably objective manner and make necessary adjustments in his/her approach. He can still be aggressive to reinforce his/her position when opposition is encountered, without being too demanding. He/she is motivated to persuade others and derives satisfaction from winning people over to his/her point of view. He/she can take most setbacks in stride.

Interpersonal Skill

He/she has strong service motivation which encourage customer activity. Naturally, he/she is engaging and personable and can develop rapport quickly with others which makes it easy for others to get to know him/her. He/she puts in time and effort needed to develop long-term relationships. He/she networks with people, reaches out to others where the chance arises, thus creating effective alliances and teams. He/she may be sceptical at times, but regardless would likely to be viewed as supportive and responsive.

Decision Making Skill

Being a practical problem solver,  he/she relies mainly on accumulated knowledge, common sense and experiences rather than on “gut instinct”. He/she is also a calculated risk-taker who weighs both the advantages and disadvantages of a proposed solutions before moving implementing his/her recommendation. Decisions have been given much thought and reflect mature judgement. He/she may not be a highly abstract thinker, but will listen to input of others and be open to new ideas, yet be conscientious in gathering the necessary facts to support his/her decision.

Time Management Skill

Successful franchising people demonstrate a sense of structure and organisation in their  approach. They are sensitive to organisational guidelines and requirements and operate by the rules, without coming across as rigid or legalistic. They have the most important details in hand, and adopt a systematic approach to manage priorities and daily demands. They switch gears when necessary while remaining focused on the basic plan. These qualities will support him/her in managing processes as well as in managing people.

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About the Author

Sean Green offers free advice about franchising and what makes a successful franchise. He does this via his Franchise My Business site which gives plenty of information on franchising. Visit