If you missed out on Duckett’s last two installments, all is not lost. For the first three, click here.For last week’s update, click here.
7. Become a master franchisee or area developerIt can be cheaper for service-based firms to buy the master franchise for a whole country than to set up a single franchise outlet.
No wonder many business owners think: "Why should I just become a franchisee when I could be a master?"
Of course, the skills required of a master are very different. But for someone who is of the mindset of a typical franchisee, i.e. not too entrepreneurial and looking to be part of a proven system with established support structures, master franchising can offer far greater rewards than simply running a single franchised outlet.
Prove an overseas system can work in your country then recruit franchisees to operate the outlets as explained elsewhere in this article.
8. Buy an existing franchised networkYou can grow your business by purchasing an existing franchised network, particularly if it currently competes with or is complementary to your operation.
Subject to some detailed due diligence, the franchisees that come with it will be skilled and motivated operators. They should also already have agreements with the company that commit them to paying you a percentage of their turnover for many years ahead.
If you have not dealt with franchisees before you may need to learn some new skills. But don’t fret. You can get the appropriate advice from The Franchise Training Centre, and the overriding benefits could be substantial.
9. Become a supplier to franchised networksYou may not want to franchise your business, or to become any kind of franchisee, but there is another option. Your business could provide products or services to the 33,000 or so SMEs operating franchised outlets in the UK.
These firms employ over 370,000 people and generate total sales in excess of £10.5bn per annum. Perhaps consider making friends with the franchising community and promoting yourself through The Franchise Support Centre? Just a thought.
So there you have it.
If you have found these tips useful, or want more information, contact Brian at www.howarthfranchising.com
Related articlesCredit crunch forces entrepreneur down franchise pathChidley sells the benefits of franchisingTraining is key for franchise growthWhat do you look for in a franchisee?
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