Franchisors should never sell franchises!
Iain Martin - Director, The International Franchising Centre
Now I know what you’re thinking: he’s playing with words here – all franchisors sell franchises – they might talk about “awarding them” but that’s just semantics, isn’t it? - I don’t think so, because it reflects a mindset.
Have you got a real vision for what your network would look like, fully developed; the quality of relationship you would enjoy with your franchisees; the performance levels of the franchisees and the revenues which would flow both to them and to you? If you have, I doubt that your mental picture includes franchisees who are struggling, who are awkward to deal with, who are negative and critical. But the truth is that there are going to be lower performers in every network the only issue is going to be how many, and how low is the performance of the bottom quartile? The answer to that question depends largely on you and the recruitment policy you operate in your franchise.
Whilst franchisee recruitment isn’t a science (in the sense that there’s a formula which works every time), I think it can be described as an art. But the art is principle-based. I would suggest that the principles underlying successful franchisee recruitment include the following:
- Total transparency a full exchange of relevant information between candidate and franchisor
- A mindset that is looking for “best fit” “has the candidate really got what it takes to be successful with us?”
- A structured recruitment process which is designed to ensure that the information exchange takes place and the candidate “fit” can be accurately assessed
- An underlying attitude which communicates the following message to the candidate: “We’re determined to be the best in our market sector and we know that if we’re to achieve that, our franchisees must share our vision, passion and have the attributes which will enable them to be the best too; are you (Mr Prospective Franchisee) good enough to be part of what we’re building?”
I promise you, that if you do communicate in this way with your candidates, they’ll be the ones trying to show you why they’re good enough to be part of your network!
The issue of whether you’re selling or awarding a franchise has simply disappeared…
Iain Martin is a Director of the International Franchising Centre and specialises in helping international franchisors secure UK partners, and UK franchisors to develop successful franchise networks, through several brokerage businesses.
Becoming a Franchisor – Avoid Mistakes
Mark Scott - Director, Franchise Development, NatWest
It is important businesses that are considering becoming a franchisor avoid costly mistakes. New franchisors should take proper advice when changing their business into a replicable business format franchise. It is vital that the potential franchisor makes the most of their resources and does not waste time or money.
NatWest’s Franchise Development Director Mark Scott says, “We advise that all businesses considering becoming a franchise avoid costly mistakes by using only respected BFA advisors. Avoid seeking advice from people or businesses that have simply paid their way to the top of web searches.”
The banks are very supportive of well set up and managed franchise businesses. When the bank reviews the structure of a franchise it looks for strong systems with robust management and advice from a BFA accredited consultant and lawyer.
- Don’t be caught out by results at the top of search engines.
- only use a BFA affiliated adviser.
- It may cost you more in the short term but the long term benefits will outweigh them
To avoid making costly mistakes, businesses becoming a franchisor need to approach the BFA for guidance. Get experienced and knowledgeable advice on how to structure a good franchise.
A referral to a BFA consultant can ensure that the correct structure is in place. They will work with a lawyer and in time introduce the concept to the Banks’ franchise teams. Working with BFA professionals will make becoming a franchisor easier in operations and access to funding for your business and your franchisees.
Tags: franchise a business, Franchise advisor, franchise my, Franchise my business, franchisors, mark scott
Franchise My Business UK
Nick Strong - Franchise recruitment advisor
Many successful business owners in the UK are looking for proven ways to expand their enterprises and are asking, “How can I franchise my business”?
Why franchise my business in the UK?
There are numerous ways to grow a business. However, business growth is not easy especially when you are opening offices miles away from your head office.
Control of the system and brand becomes difficult. Expensive area managers have to be hired. Offices rented, telecoms installed … The list of costs goes on and on. This puts a lot of pressure on the core business and can threaten the whole enterprise.
Franchising offers a way of growing your business with the efforts and investment of new business partners. When asking the question, how can I franchise my business, there a number of initial steps to action.
1. Document everything you do that makes your business successful. This is called your intellectual property and is the most valuable document your business owns. Protect this property as it is your business. It is this property that a franchisee will pay money for, as when they follow the method they can replicated your success.
2. Trade Mark your logo(s). It is vital that your distinct mark/logo design is registered and protected. Both you and a franchisee will benefit from a protected trade mark and so will your customers.
3. Get your legals in order. Speak to an accredited British Franchise Association lawyer about your franchise contract. The contract outlines how you will manage and govern your franchisees.
4. Use an accredited British Franchise Association consultant to help you to go to market. They can smooth the way forward and help you avoid costly mistakes.
5. Prepare your marketing and business development plan. This will include a number of budgets and actions such as:
- Franchisee recruitment – see www.SelectYourFranchise.com
Staffing
Legal
Banking
Capital management
So if you are thinking, how can I franchise my business in the UK? Take positive action and consider franchising carefully. It could transform your business.
