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Can I franchise my business? - Part 1

By Ana on Apr 20, 2021 6:33:36 PM

Topics: For Franchisors

Franchising enables you to grow your business and build your brand.

With franchising you typically copy your business or that part of your business that you want to franchise (and its systems and processes) in a way that enables others to operate a business identical to your business.

This is the first in a series of articles about franchising your business. In this article we focus on branding and business systems.

 

Can I successfully template my business?

When assessing whether you can template or franchise your business you should first consider your brand, your business systems and consistency in your product or service.

Your Brand

While you should settle on and protect your name and logo, branding involves more than just a name or trademark.

A brand is reflected in everything that your business does from marketing, to menus, to uniforms, to the look and feel of your premises.

You may work with a graphic designer to assist you with the look of your brand and logo. This can include colours, fonts and design.

You may also work with a brand strategist to further develop the application of your brand, including the use of tag lines which convey your brand message.

It is important to spend time and energy on your branding at an early stage. Rebranding can be complicated and risky as illustrated by Uber, who completed an unsuccessful rebrand in 2016, having to rebrand again in 2018.

You should also consider your premises branding in terms of layout, fitout and styling. Uniformity of shop fronts is a key characteristic of franchising. Assess whether the look and feel of your premises can be easily replicated, or whether you want to change the look when you franchise.

 

Your business systems

Consider whether you currently have in place business systems that can be easily followed and replicated. It is important that all of your key business activites have documented processes, prodedures and standards.

Examples of processes and procedures include inventory management, operations, shipping, accounting, training, customer service, hiring and recruitment and purchasing.

What is it that sets your business apart from your competitors? If a customer’s experience is an important aspect of your business, well documented customer service related processes and procedures are vital to replicating the business.

You may also provide a franchisee with policies including business operation related policies (such as HR policies), or franchise network related policies, such as site selection or territory selection policies.

If you are operating a retail business, a good point of sale system (POS) is essential. Your POS system should be able to produce all of the reports that will assist in your decision making in respect of the franchise network.

In addition to traditional revenue reports, POS systems can now give insights such as whether customers are returning customers and what a store’s most popular and profitable products are.

Custom reporting is time consuming and expensive, so you need to consider whether an off the shelf system will meet your needs.

Good payroll management is also an essential consideration.

Consistency in your product or service

Consistency builds strong franchise brands.

The feeling and experience that a customer has at each franchise location must be consistent.

If a franchise location for some reason does not ‘feel’ like your brand, customers are unlikely to return and your brand consistency will be damaged.

Part of your brand strategy will be to ensure that your name and logo are used in a consistent manner (colour, font, size) across all locations and that your locations all look and feel the same.

To ensure consistency in products, you will need to either supply the franchisees with products or nominate approved third party suppliers who must be used by franchisees.

To ensure consistency in services, processes and procedures must be detailed. In addition the franchisee and their employees will need to be well trained.

Quality and consistency is generally determined by franchisee selection, franchisee training, ongoing support and franchisee compliance.

 

Can I Franchise My Business-1

 

Ana

Written by Ana