As franchising specialists, we often meet with business owners who look to franchise their business by only obtaining the necessary legal documents. In most cases, these business owners struggle to succeed in the competitive franchise market because they skip the integral research, strategy and planning stages of franchising that are specific to their business offering.
Over the past 35 years of running DC Strategy, Australia’s leading end-to-end franchising firm, we’ve learned the ins and outs of scaling businesses with thorough franchise development programs. Here are the top three key learnings on why franchising your business involves so much more than just obtaining legal documents.
A franchise business model operates differently to a single or multiple company owned units
Practically every franchise in Australia started out as a single or multiple company owned units, that established critical mass in their local markets, before expanding through franchising. However, not all franchisors have been successful. It is one thing to run the daily operations of your own business and establish market share in your local market, but quite another to engage with business partners who invest capital to setup and operate replicas of your business in new locations both in Australia and overseas, using your brand and business systems and depending on you for leadership and support. To help ensure your business succeeds as a franchise it is integral to determine your roles and responsibilities as a franchisor versus the roles and responsibilities of your franchisees and strategically structure a symbiotic relationship where you are mutually dependent on each other for success.
Developing a successful franchise network is a multifaceted process
If you are running a successful single or multi-unit business you may think your business is ready to scale as a franchise network. However, developing a well-integrated and functioning franchise system is a multifaceted process, which lays the foundation to building a successful franchise network. It takes years of experience in the areas of business analysis, commercial acumen, franchise law and franchise sales and marketing, to create and execute a well-developed franchise system.
A team of experts is needed to support your franchise journey
By simply seeking legal consultation instead of engaging in a franchise program, business owners are missing out on the knowledge required to build a successful franchise network. This knowledge spans insights into the latest issues and trends in franchising, introduction to vendors that can simplify processes or provide services such as geodemographic profiling, site selection and lease negotiation, shop design and shopfitting, consumer marketing, etc., hand holding and providing implementation support and advice as you transition into your role as a franchisor.
Working with expert consultants in franchising helps business owners navigate the minefield of franchising and sets up the right path to profitability and business growth.
If you’re looking to grow your business by franchising, contact our franchising consultants for a complimentary 20-minute assessment. We’ll help assess the readiness of your business for franchising and further explain how our franchise development program works. Fill out our contact form on https://dcstrategy.com/services/franchise-consulting/ to get in touch today.