Posted on: 30 January 2015
Not all businesses are suitable for franchising. Businesses whose brands are based on an individual, or whose idea is easy to copy with little upfront investment, are unlikely to succeed as a franchise. However, those with products or services that are repeat purchases, such as restaurants, cleaning or bookkeeping, are ideally suited to it.
Clive Sawyer, the franchise consultant from Business Options, recommends that any business considering becoming a franchise produces its business plan before giving any thought to the company structure. That way the business model is tailored to the plan rather than the other way around.
Often someone outside of the business gives the owner the idea that their business can become a franchise. Sometimes it’s because it has powerful, unique branding that others will easily remember and engage with. Or the PR may already have been done successfully, in which case the benefits of the hard work of establishing the brand can be passed on to others to meet customer demand.
This is the case for Dean O’Brien, who created Mr Yipadee (a children’s entertainer and singer) following the birth of his daughter. “My mission is to empower and entertain children on a big scale, to enable them to grow knowing they can reach their full potential,” says Dean. “With a lot of other people doing this in their local regions, this will achieve this objective quicker and on a bigger scale. Having met with people working in and supporting the franchise sector, I have realised that franchising is the best way for my business to directly reach and work with a lot of children and parents.”
As well as your business suiting franchising, you as the business owner need to find what aspects will satisfy you personally too. Aspiring to help others achieve what you have is the motivation that has driven Carlos Garcia from Total Clean. Carlos decided to franchise his business because he wanted to grow it on a national level. “I wanted to share my knowledge and the experience I had gained with others,” he says, “to give them a chance of the success I have enjoyed.”
Use the content guide below to answer your franchising questions:
- What are the advantages and disadvantages of franchising?
- Does my business suit the business model? (You are here)
- What do I need to consider when setting up the franchise?
- What are my options for funding a franchise?
- How do I recruit the right franchisees?
- What are the advantages and disadvantages for the franchisee?
- Will I suit the franchise model?
- Where do I find franchise opportunities?
- How do I choose the right franchise business?
- What questions should I ask before buying?
- How can I finance becoming a franchisee?
- How do I make my franchise successful?
Compare business insurance
The information and tools contained in this guide are of a general informational nature and should not be relied upon as being suitable for any specific set of circumstances. We have used reasonable endeavours to ensure the accuracy and completeness of the contents but the information and tools do not constitute professional advice and must not be relied upon as such. To the extent permitted by law, we do not accept responsibility for any loss which may arise from reliance on the information or tools in our Knowledge Centre.