How do I offer my business as a franchise?
When franchising any business, first you need to be able to demonstrate that: you have a proven business model suited to franchising, you have a strong brand identity that can be used across multiple locations, and that you’ve got adequate processes to oversee and maintain the quality of products offered by your franchisees.
You’ll also need to establish that your margins are sufficient for both you and your franchisees to be able to make a reasonable profit.
You should then draft the terms of the franchise agreement that you’ll get new franchisees to sign. This will be a complex legal document for which you’ll certainly need professional advice and assistance. Once this has been prepared, you can start marketing yourself to potential franchisees.
How do I find a franchise or partner?
First, decide whether you want to work with a partner or a franchise. These are very different business relationships and you will enter into them for different reasons.
To identify a potential partner business, use the contacts you’ve built up from networking, your supply chain and even your client base. Industry organisations may run networking events or forums, and your local chamber of commerce may also be able to help if you’re looking for a local firm. These routes may also help you to find a suitable franchise, and there are also several online franchise directories that allow you to search by industry, location and investment level.
Should I buy a franchise in a crowded market?
A franchise can be a great opportunity, but it’s essential to do your market research first.
Your research should focus on answering some key questions. Is the market already saturated, or are there prospects for further growth? Will this growth be backed up with strong support and marketing from the franchiser? Have existing franchisees got the market covered, or are there some under-served locations? As a new franchisee, do you possess the necessary skills and expertise in the sector to enable you to effectively compete?
Before you make a decision, you should also look for information on the franchise’s failure rate and reports of any franchise lawsuits and disputes. Visit and talk to existing franchisees and research other franchisers.