Is Your Business Actually Ready to Franchise?

One of the best things that people are more encouraged to get into business these days is the ability of some businesses to be franchised. And I do support these people 100%. Although before an entrepreneur can open this opportunity to others, he has indeed gone through all the struggles just to keep his business afloat.

This is a huge step that any entrepreneur will make because it is actually a make-or-break situation. Some entrepreneurs think that their best way to earn more money is to franchise their business. And they are not wrong. However, some have thrown themselves into the water without fully understanding expectations.

I have learned about one business that was open for franchise. Some got encouraged to avail the opportunity. During those times, the franchising cost had already been too high. However, several individuals got interested, and so there were 5 franchisees. For the first year, it would seem that the franchisor hit the jackpot because of how much she has earned from franchising her business. However, as the days went on, problems arose. She may not have realized that her responsibility of being a franchisor does not stop after handing her the franchising fee. She failed to provide support, marketing was terrible, and branding was a problem. In just under 3 years, all franchisees lost from the business. Only the original business remained until this day. What does this mean? This means that the entrepreneur wasn’t just ready to franchise her business. She lacks the proper knowledge on how to do a successful franchise business. She, on her part, may not have lost, but I pity those people who invested in putting up a franchise business. Literally, their money went up in smoke.

Is Your Business A Franchise Winner?

Before you start rejoicing at the possibility of earning more money through franchising your business, you need to think things through to ensure that you will benefit from your move:

• Brand. Uniformity of the business in all aspects of the business. The business owners should be able to have a complete understanding of what the brand is and can be able to articulate the concept and plan of the business. It is not enough to just tell prospect franchisees of the kind of business being offered, but more importantly, the main framework and how it should be recognized.
• Cost of franchising. Entrepreneurs should know that franchising their business can create more income or lose all of it. There must be investors to help in this step for expanding the business and legal help.
• Credible Products and Services. You have to ask yourself if a bigger and broader market will accept what you offer. This means that anyone who wishes to invest would naturally prefer a business that can withstand the test of time and can be able to adapt to the constant changes in the market.
• Before one opens his business for franchising, it would take years of commitment and dedication to see how stable it has become. Once the entrepreneur feels that there may be a need for his products or services to a bigger audience, it may be considered to start opening the opportunity to others.
• Teaming up with various experts in different fields. When you open your business for the franchise, you will need multiple people on board – from marketing, advertising, graphic designs, public relations, training, and legal matters.
• Adding value to the business. Wise individuals thinking of putting up their business would not want to waste money just as they are starting. They want to make sure that although there are many risks to take in business, they choose the kind of brand with quality and value. Franchisors should be transparent about what to expect and should lay everything on the table.
• Choosing the right franchisees. It is safe to say that not all franchise business is for everyone. Businesses need to be run by persons born/built for the kind of business.

Being a franchisor, you need to provide all the support that the franchisees need to keep your brand and identity – from the colors, designs, and concept. Remember when you and your franchisees have agreed to the terms, you have set in the contract. You should also adhere to all the imposed rules. Otherwise, you might be seeing yourself in countless legal battles if you forsake your franchisees.

To become more successful with your business, continue vigilant with your business. Always make sure that the business remains aligned with its objectives. The contract that you and your franchisor have signed is very powerful. And both of you need to always be on the same page when running the business.

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You may contact Armando “Butz” Bartolome for questions and more information.

By email: aob@gmb.ph

FB Page: Armando Bartolome

Linkedin: https://www.linkedin.com/in/franguru/ 

Website: https://www.gmb.ph