How to Franchise Your Business Speaker Tony Fitzpatrick

How to Franchise Your Business Speaker: Tony Fitzpatrick Managing Partner www. franchiseyourbusiness. ie

What is a franchise? A franchise is a licence to use a proven business system, its brand identity, its operating procedures, marketing procedures, advertising procedures, training programmes and its support framework.

What is a franchise? The franchisee’s own personal flair, their unique entrepreneurial skill, energy and commitment are added to reap the full benefits of the franchise. Studies show at more than 90% of franchised businesses are successful compared to 55% of non-franchised business set ups.

Terminology l A Franchisor is the original developer of the business l The Franchisee is the investor who buys the right to trade under the brand using the Franchisor’s concept

Franchising Some of the world’s most successful companies are franchises. The owners realised that franchising offered key benefits such as; l Unlimited growth potential, attracting franchisees instead of hiring employees

l Expansion without huge bank borrowings, or having to share equity l Long term stability and predictability of the business model l Rocketing revenues l Boosts the value of the business

Franchising l The USA has 3, 000 Franchisors. A new franchise opens every 8 minutes of every business day l 1 in 12 retail outlets is a Franchise, generating 18 million jobs and an annual payroll of $500 billion l It accounts for 40% of all retail sales in the USA

Franchising l The number of Franchisors in the UK exceeds 700 with 35, 000 Franchisees employing 333, 0000 people and generating annual sales of £ 12. 2 billion. l The Lebanon has 150 Franchisors

Franchising provides an opportunity to work for yourself, but not by yourself. By owning an operating a franchise you are investing in a proven method of doing business where all the problems associated with start up business have already been ironed out.

Franchising provides a proven system to follow. That’s S. Y. S. T. E. M as in “Save Yourself Time, Energy and Money. ” It gives a structure to follow. Franchisors can only be successful if their franchisees are successful. This makes for a win-win relationship that is unique in the business world.

The Market for Franchisees Thousands of people are looking to start their business, be their own boss, and pay themselves what they’re worth. They include: l People who have been made redundant l Current employees l Second incomes

Redundancies Dramatic effect of recession. Large numbers of people losing their jobs. They can: l l l Stay unemployed Start a business, or Buy a franchise Many of these people lack the skills or confidence to start their own business. Only alternative is to look at franchising.

Second incomes Big increase in the number of people unable to work full-time but need additional income because partner lost job or family income has been reduced. Franchising can solve their financial problems.

Current employees Job security is history. Wages and bonuses are reduced. Any job is at risk. People look to control their own destiny and franchising can be the answer. They can be their own boss, work what hours suits them, and benefit directly the more successful they become.

How you make money from Franchising l l l Mark up on product you sell to franchisee Percentage of franchisee’s gross sales Flat monthly fee

Is your business suitable for franchising? Ask yourself these questions: l l Have you run a successful business for at least one year and preferably two or three? Have you proven your concept? Will it survive in the long term? Is it profitable?

l Can you produce audited accounts? l Do you operate in a niche market or offer something different in an established field? l Can your business be replicated and easily taught? l Can you offer leadership, strong management, motivation and support?

And … Can you offer a franchise at a cost that is good value for money and can make a decent return on investment in the short to medium term and a good living for its owner?

Benefits of Franchising As a franchisor you can expand your business - and your income - more rapidly and at less risk using other people’s money. When you award a franchise you are creating an income stream from royalties or management fees for the foreseeable future.

Benefits of Franchising Profits are higher because your costs are lower. You’re working with motivated business people who will bring creative, innovative ideas to the franchise.

The psychological element… You are helping others to achieve their dream of achieving financial independence by showing them how to establish and operate the business you created.

The 10 key questions to ask yourself before you go into franchising

1. Do you work well with others? One of the greatest skills you will need to succeed in franchising is the ability to work effectively with other people.

2. Can you accept and manage risk? To franchise, you invest time and money in an endeavour which has an element of risk. You must be able to understand the nature of the risk and to manage it.

3. Are you single minded? The ability to stay the course and commit to the long term is a big advantage in franchising, which is a long and involved process. The determined and focused franchisor is often the successful one.

4. Do you have a strong ego? You must believe in your dream and have a confident personality in order to build enthusiasm and interest in others. Franchising is a high profile undertaking.

5. Are you a good salesman? Salesmanship is critical to franchise success. Growth depends on finding suitable prospects and then selling them on the benefits of your business.

6. Are you a good communicator? So much of franchising involves communication that a system that does not facilitate the free exchange of information is doomed to failure.

7. Are you an entrepreneur? An entrepreneur sees potential where others see problems, and opportunity where others see only obstacles. The entrepreneur identifies real needs in the market and commits the necessary effort to fill these openings.

8. Are you hard working? Getting a franchise off the ground is a significant undertaking. It takes time and effort, which translates into work.

9. Are you adaptable? The ability to adapt to constantly changing circumstances is a necessity in a multi-faceted industry such as franchising.

10. Can you afford it? You need to be in franchising for the long haul. So prepare for it. Franchising is not easy, and it’s not cheap. Building your new business takes time and patience.

How to Franchise Your Business Speaker Tony Fitzpatrick Managing Partner ww. franchiseyourbusiness. ie