Franchising, when done right, can be one of the best ways to expand your business. In fact, you can even build a business empire with the franchising method. You only need to look at places like McDonald’s as a prime example of a mega-successful franchise.
That being said, not every type of business is suitable for franchising. So if you’re considering franchising your business, here are a few key points to look at first.
Can Your Business Be Cloned?
Can your particular business model easily be replicated? Some businesses are so specific, or so dependent on the owner, that they cannot easily be cloned. In other words, would someone readily be able to copy your business
and run it successfully without needing you involved in day-to-day operations?
Ideally, your business should be structured in such a way that it’s simply a matter of following a proven system for the new franchise owner.
Can Your Business Be Replicated In Other Areas?
Is it likely that your business could work just as well in another location? In other words, are there any special or specific reasons why it works so well in its original location that maybe won’t be transferable to other locations?
Will Laws In Other States Have Implications On Your Franchise?
Every Australian state has different laws when it comes to governing businesses, so you’ll need to check that your business model is compliant with laws in other states, if the plan is to expand interstate.
Can You Easily Prove That Your Business Is Profitable?
No one is going to be interested in buying into a franchise for a business model that doesn’t have the runs on the board, or the paperwork is so sporadic and disorganised that its profitability is hard to prove.
Your business also needs a track record of longevity. You can’t start something up and then expect to successfully franchise the idea two months later. Wait until your business has been running profitably for at least a few years before attempting the franchise model.
Talk To An Expert Business Lawyer About Franchising
Franchising is as much about legalities as it is about business, so it’s best to discuss your options with a solicitor who is trained to understand the franchising model.
In Brisbane, Gold Coast and Sunshine Coast, talk to the experienced team
at Aylward Game Solicitors about your options, and whether it’s a viable course of action for your business.
Article Source: Consider Before Franchising Your Business