23 Mar Franchising in 2015: What You Need to Know
Before you go away for a weekend, you check the weather report, so you can be prepared for what lies ahead of you. Before you franchise your business, you also need to do you research and see what changes and trends lie ahead.
There have been a number of changes in franchising in 2015. Below is a brief summary of some of the key ones:
New Franchising Code
A new franchising code has taken effect during the start of the year and in this code it is stipulated that amongst other things franchisors and franchisees must carry out business in good faith. This applies to both franchisors and franchisees. It applies not only in relation to how franchisors are permitted to exercise their rights under a franchise agreement, but also in relation to the negotiations leading to the signing of the franchise agreement. There’s also changes to the disclosure requirements, non-compete clauses and more. The changes will apply to ALL Franchise agreements either existing or new and so will affect all those involved in the franchise industry
Technology is always changing and with it comes new ways to manage your business and to interact with your customers. In regards to franchising there are point of sale systems which can help you to monitor and track the performance of your franchisee. You can add ecommerce functions to your website so that can offer your clients additional ways to buy products or services from you. You can use Apps which help your client to interact with you business from mobile or tablet devices. All of these are now common place in a franchise systems and so when franchising your business you need to consider how you will incorporate them into your franchised business.
Another recent trend has been the addition of specialisation in franchising. Franchisees are taking on niche’s such as gluten-free fast foods, cafes selling specialised health foods, gyms offering nutritional supplements. Franchisors need to know how to compete with these and/or how to incorporate specialty products or services into their franchised business.
If you are planning on franchising your business in 2015, let our franchise consultants help keep you abreast of the current trends in franchising in 2015. Call us at The Franchise Institute and we’ll assist you in preparing your business for a franchise.