Posted on: 30 January 2015

Franchising is niche for a reason. It is a relatively complex business model that, when implemented correctly, can grow quickly and profitably.

But it is these complexities that mean that people that are new to franchising should consider calling on those experienced in it to support them.

Clive Sawyer sees franchise consultants as part of the team that any business needs around them to grow. “In the same way that you might use the services of an accountant, a lawyer and a marketing agency, a franchise consultant helps you set up your franchise to ensure its success,” says Clive. “They stop you making mistakes and tell you what you don’t know. Ultimately, the objective is to help educate you and your team to be able to run your franchise without them.”

Carlos Garcia from Total Clean agrees. “Make sure you recruit quality consultants with knowledge in your particular field, who can then bring the key experts to you so that you don’t make expensive mistakes.”

As a franchise recruitment expert, Sarah Carlile from Coconut Creatives suggests that generally speaking you can expect to recruit one or two franchisees for every 100 leads (people expressing an interest in your franchise). So, as Sarah points out, if you want to take on 10 franchisees over the next year, then you are looking at generating a minimum of 1,000 leads.

In her book, ‘Dream, plan, reduce risk and take action’, Sarah sets out how important budgeting for franchisee recruitment is.

“Ensuring that you are targeting and courting the right consumers in the right way with consistent messages that reflect your brand, is most definitely at the heart of a solid marketing strategy, and all that activity needs to operate within a budget. It is really important that you are realistic about what you can spend on franchisee recruitment. You can work out your budget as follows:

Leads required x cost per lead + 10% of potential revenue.”

To read an example of how this works, including the amount you should use as your cost per lead, visit the free resources section of Coconut Creative’s website.

Carlos Garcia emphasises the following tips for making sure your business model fits the key criteria for franchising:

  • high profit margins
  • an easily taught model
  • stable growth sector
  • relatively recession resistant industry
  • the franchisor’s ability to heavily invest financially and with their personal time.

Use the content guide below to answer your franchising questions:

I'm considering franchising: 

 - The experts introduction to Franchising
 - What is franchising?
 - How big is the UK franchising market?

I want to franchise my business - Becoming a Franchisor

 - What are the advantages and disadvantages of franchising?
 - Does my business suit the business model?
 - What do I need to consider when setting up the franchise? (You are here)
 - What are my options for funding a franchise?
 - How do I recruit the right franchisees?

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Business Guidance

Does my business suit the franchise model?

30 January 2015
How do I make my franchise successful?

Business Guidance

How do I make my franchise successful?

30 January 2015

Business Guidance

How do I recruit the right franchisees?

30 January 2015

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