Franchising is one of the most successful business models in the country and is a great option for building and growing a business. Like any business venture, however, franchising has its advantages and disadvantages. It is vitally important to understand the advantages and disadvantages of franchising, and all of the different facets of this business model to better navigate the industry. The sections to follow discuss the advantages and disadvantages of franchising, complied by the Franchise Administration team. The Advantages of Franchising Business Assistance Franchising comes with business assistance from the franchisor. In some instances, the franchisee may quite literally receive a turnkey business. Others may not make it quite that…

As an entrepreneur you are probably asking yourself “how do I know if my business is right for franchising?”. To answer this question you need to have the right numbers, with a founder mindset, and a scalable business. If your business is growing, with good cash flow, there is an opportunity for franchising. If you are thinking about franchising your business and you want to know if you’re ready, as well as what stage your business needs to be at to franchise, Franchise Administration can assist. Theoretically, any well-established business with proven systems can be franchised. However, just because you can do something, that does not necessarily mean you should.…

It is important to ask the right questions to better understand what it really means to be a franchisee in a particular franchise system, and if that franchise business is truly for you. For your convenience, Franchise Administration has provided a comprehensive list of questions to evaluate when franchising a business. Basic Questions to ask the Franchisor include: Where will your franchise be located? What is the success rate of existing franchises?  Is there a franchise owners association? Is there a franchise advisory council?  Who owns the trademarks, service marks, and are they federally registered?  Are there any disputes pending or threatened against the trademark?     Does this company compete with the franchisees in the…

Franchisors are tasked with the responsibility of developing coherent marketing strategies that involve multiple channels across several franchise locations – all the while maintaining a consistent brand identity. Segmentation plans are developed for this purpose of effectually identifying each section of target the market. Segmentation plans for franchising a business is essentially a marketing concept that refers to a company’s plan for identifying each section of its target market. Businesses develop a segmentation strategy to appropriately categorise their customers and choose the best niches for their products and advertising. With so many moving parts in the industry you will need a comprehensive segmentation plan…and this is where Franchise Administration can…

Selecting a new franchisee can be a big risk for a franchise. To combat this risk, franchisors use psychometric tests to conduct meaningful and structured selection interviews. These tests also help potential franchisees to gain insight on their competency match compared to the ideal franchisee competency profile. Franchise Administration can assist with psychometric testing for franchisee selection, making the process easier for both the franchisor and franchisee. Psychometric testing provides an objective method to measure the potential ability of candidates to perform well in a job role. These tests reveal information to help prospective franchisees and franchisors make more informed, and successful, decisions, resulting in an effective franchisee that will…

Master franchise agreement development

If your goal is to purchase a franchise, choosing the right franchise brand to invest in is one of the most important decisions to make as a business owner. It is not just about finding a company with a proven track record, but also finding one that fits your persona. Your first step, is knowing what to look for when you’re evaluating potential franchises and what to consider before franchising. Basic key points to consider before franchising include: More in-depth factors to consider for franchise opportunities include: Initial Investment The initial investment is the total amount of money you will need to establish your franchise and open for business. Initial…

Franchise marketing is the promotion of a larger brand, helping to drive awareness and revenue to the individual businesses that support the larger franchise. Marketing planning for franchises is important because it assists franchisors to build and maintain the reputation of the brand, whilst also helping franchisees generate leads and grow their businesses. A franchise marketing plan may include brand awareness campaigns and messaging that will help to unify the larger brand identity of the franchise. As a result, all parties involved benefit from these marketing efforts. Whether through social media, digital marketing, search engine optimisation (SEO), or email marketing, franchise marketing builds brand awareness and ultimately bolsters the profile…

The average franchise system usually consists of a single franchisor in a franchise agreement with one or more franchisees. At that point the franchisors business has been successfully developed in order to expand their model. The franchisor provides the franchisee with support, training, as well as all the business material required to launch the brand with their best foot forward. In return the franchisee pays an initial franchise fee and ongoing royalties to the franchisor for the legal use of the brand, development, training and support. Within the franchising realm, entrepreneurs also commonly ask the question of “what are master franchises and what do they do?” Master franchising goes one…

Franchising has become a popular business model for entrepreneurs to start their own businesses. Whether you’re considering becoming a franchisee or looking to franchise your own business, it is vitally important to ask the question of “What are the 4 P’s of franchising?”, which is crucial for success in the industry. Understanding the Four P’s of franchising is vital for anyone considering entering franchising. The 4 P’s of franchising comprise of Product, Price, Place, and Promotion, each playing a crucial role in the success of a franchised business. Product When it comes to franchising, the first P stands for product. It is vital to clearly define your franchise product to…