Franchising can be an excellent way for established businesses to expand their reach, increase profits, and get their brand in front of more customers. By selling franchise rights to your business model and brand, you can grow rapidly without taking on all the risk and overhead yourself.
Here are some tips on how franchising can boost your business turnover if done thoughtfully and strategically.
The best candidates for franchising are businesses with an established, successful business model. You’ll need several years of operating history, healthy profit margins, and a unique product or service to stand out from competitors. Work out any kinks before franchising – you want new franchisees replicating a formula you’ve perfected. Operating procedures, job descriptions, purchasing systems, and marketing campaigns should all be documented and ready to replicate.
A big part of the value of franchising is providing franchisees with extensive training on all aspects of running the business. Offer an in-depth initial training program on everything from operations to customer service so franchisees and their staff deliver a consistent experience. Provide field support with ongoing training, quality assurance inspections, annual conferences, and guidance on technical issues. Respond quickly if any franchises struggle or fail to uphold standards. Thorough support is crucial to success.
Maintaining uniformity across the brand builds customer trust and recognition. For consistent branding, all franchise locations should adhere to the same logo, signage, interior design, uniforms, and décor. Make sure each franchise presents itself as part of the same company. This also helps with quality control. Customers know what to expect when visiting any of your locations.
It’s tempting to open dozens of new franchises quickly. But well-paced, sustainable growth is healthier in the long term. Set targets for how many new units to open each year, focusing first on your existing geographic region, then expanding into new markets gradually. Bringing on too many new franchisees at once can strain your support capabilities. Grow at a rate your infrastructure can handle.
Be selective about who you entrust with your brand. Thoroughly vet candidates to ensure they’re financially stable with the means to get a location up and running. Look for candidates with business experience, leadership skills and a commitment to following your model. Avoid overeager franchisees who may not have adequate funding or expertise, and taking your time results in better partners.
Franchising brings new challenges in maintaining quality standards across many owner-operators. Seek feedback from franchisees on what works and where they struggle. If issues arise, collaborate to improve instead of assigning blame. Refine training and support programs based on actual experience. The challenges franchisees face can teach you how to better set them up for success.
Use technology to make operating a multi-location business more streamlined. Shared software and online platforms keep everyone on the same page for bookkeeping, inventory, scheduling, payroll, and point-of-sale systems. This makes it easier to track KPIs across the network, spot warning signs at individual locations, and keep processes consistent.
While growing your unit count is exciting, stay laser-focused on profitability. Make sure franchises maintain healthy margins through royalties and fees. Offer guidance on managing costs. Scale carefully to avoid the rapid growth outpacing the support you can realistically provide. Sustainable profits let you reinvest in the network
While franchising can expand your brand’s reach and boost profits, it’s critical to research new markets thoroughly first. Evaluate factors like local demand, competitive landscape, real estate costs, labour pool, and regulatory issues in potential expansion locations. Take a cautious approach to ensure the conditions support sustainable franchise success before selling rights in an area.
You can expand your concept immensely while increasing your bottom line. Just lay the proper groundwork first and grow at a managed pace.
For more information on how to increase your business turnover with franchising call The Franchise Institute at 1300 855 435. You can also write to us via this contact form. One of our experts will contact you soon to answer all your questions. We are here to help you every step of the way and will be rooting for your success in your franchising venture.