Offer Growth Through Franchising

For many years, businesses have adopted a binary approach to growth – organic or through mergers and acquisitions. But there is also a third way: Franchising.

The franchise model allows business owners to balance the need for growth with the need to mitigate some of the corporate risks associated with both organic growth and growth through mergers and acquisitions. It offers brand owners an easy way to expand their business, working with carefully selected business partners who use their own funds to open new units, using the franchisor's brand, trademark, and operating system, while also taking responsibility for finding and securing the location and hiring the workforce.

Adopting this type of business model can be very beneficial, especially in challenging markets, by creating additional revenue streams and providing growth for a business and its shareholders when more traditional routes have stabilized or become limited.

Although there are many advantages to be gained from franchising, it is also important to be cautious when considering whether or not to adopt this type of business model and if it is the right strategy for you.

Top Tips for Franchising:

 1. Be Strategic
   - Start with the end goal in mind and carefully plan your expansion, whether regional or international.

 2. Be Prepared to Invest
   - Franchise success is about leverage, and you must invest upfront to develop the system in the first place.

 3. Manage Risks
   - Understand and define what success looks like in a franchise context.

 4. Avoid "Fads"
   - Longevity is the key to a successful franchise system.

 5. Seek Proper Advice
   - Look for experienced franchise advisors.

 6. Invest in the Right Team
   - Get experienced franchise operators on your team.

 7. Protect Your Business
   - Protect your brand, intellectual property, and confidential information.

 8. Run Pilot Schemes
   - Perfect the system before offering franchises for sale.

 9. Create the Right Business Structure
   - Choose the right structure for your business and the markets you target.

To discuss whether franchising could be the right solution to help you provide additional revenue streams and long-term growth for your business, please contact a member of our national franchise team below.