Can your business expand successfully through franchising?

Do you own a business that could be suitable for franchising? Do you consider your business to have the foundation stones to form the basis of a successful franchise?

A Proven History of Trading

At the heart of franchising it is about replicating a financial model that has already been achieved, so it is vital that there be sufficient history of trading to give realism to any financial projections that you may give to potential franchise owners.

A Proven System

The franchise owner should be able to be shown a business model that works. Successful franchising requires that the franchisor has already gone through the learning curve, recognised the downfalls and found the appropriate solutions. The franchise owner should be replicating a tried and tested business system, rather than experimenting with new ideas.


Branding is imperative to the success of your franchised business. When buying a franchise people want a business that shows strong corporate identity. Remember if your looking at expanding internationally then your branding has to be suitable for national and international recognition. So if your trading under a name that’s been established in a local region you may need to devise a new brand name before franchising is undertaken.

Profit Margin

There must be enough margins to sustain continued business growth and development, while also allowing both the franchisor and the franchise owner to enjoy a reasonable return. The franchisor must receive a profit margin sufficient to provide good back-up and support and maintain a healthy research and development programme. While the franchise owner must have sufficient margin to build a rewarding business given their commitment to replicating your proven system.

Staying Power

Franchise owners will not wish to invest for the long term in a business, which has a product, or service, which may be fashionable or become archaic over time.

To inspire confidence it’s imperative that your product or service demonstrates longevity in the marketplace. Discerning prospective franchise owners will be looking for product and service deliverables that are required in the market right now.


Professionalism is shown to a franchise owner in a number of different ways, such as, how the telephone is answered, the quality of service provided, the transparency of communication, written and verbally, the nature of the head office meeting room, the attention given to detail, a clear code of values and evidence of satisfied clients. Franchise owners will be attracted by a professional approach to recruitment, which involves the right body language, meeting room atmosphere and the approach to the franchise owner. Those franchises, which portray a lack of true professionalism, can be a ‘switch off’ to the right people.

Attitude of management

The attitude of management towards franchising is key to success. Franchise owners are not employees; they are self-employed business owners who must be treated as equals. While the franchisor needs to lead with authority, franchise owners should be given the opportunity to have their ideas and suggestions heard and discussed. The Franchisor’s objective is to build a successful business through the successful development of its franchise owners