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?

Market

– How big is your market?

– How volatile is your market?

– Does it have mass appeal?

Products

– Is there consumer acceptance of your product?

– Is your product or service easy to sell and deliver?

– Quality record?

Brand

– 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 proven, robust and capable of being learned by a franchisee?

Striding Out offers a Coach Franchise to coaches who want to be part of a Network of Coaches. Together we collaborate on resources, knowledge and skills to achieve more success by working together.

Striding Out offers a Coach Franchiseto coaches who want to be part of a Network of Coaches. Together we collaborate on resources, knowledge and skills to achieve more success by working together. http://www.stridingout.co.uk/about/coach-franchise.html

Author Bio: Striding Out offers a Coach Franchise to coaches who want to be part of a Network of Coaches. Together we collaborate on resources, knowledge and skills to achieve more success by working together.

Category: Advice
Keywords: coach franchise