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Download our Preparing for Franchising brochure to receive essential information for business owners considering franchising.
Not sure what the right model is to help you achieve your business goals?
Our team are experts across a range of models and structures. We’ll spend time understanding your end game and what you want to achieve, the timelines for achieving it and how much or little control and input you want across day-to-day operations and compliance.
Complete the questionnaire in the link to see which model best aligns with your responses.
Find which growth model suits your business
Download our Preparing for Franchising brochure to receive essential information for business owners considering franchising.
Have you worked with businesses in my industry before?
We work with many businesses across most industries and sectors, so it is highly likely, but we don’t need to be an expert in your industry because you are. Our team's job is to work closely with you to understand every part of your operating model that will apply to how franchisees run their business. This will enable us to write your manuals.
Franchising a business is simply the process of replicating your business operating model, enabling others to operate the business in substantially the same way in a different location.
It is essentially the same principle as staff, although the franchisee will have a wider range of responsibilities; ultimately, the duties are performed in the way you want them to be. The difference is franchisees pay to join and establish the new business and then take full financial and operational responsibility for the day-to-day running.
Your business operating model is unique, so your franchise model will also be. We will work with you to set up your franchise model how you want it to run. There is no such thing as a standard ‘franchise model’. It is completely unique to your business model.
No, we do this for you. Our comprehensive process includes several key meetings where we learn about all areas of your business operations. If you already have documented systems and processes, our team will adapt these and incorporate them into the various documents.
There is consistent demand for your product or service. You have established and proven systems across all areas of business operations (not necessarily documented). The business can show a track record of profitability. You have the capacity to assist franchisees with establishing their business unit and can provide comprehensive training. Our team will do most of the work throughout the process; your job is to attend the meetings and answer our questions. We will guide you through the entire process.
We work at your pace, so it can move quickly or slowly, depending on your capacity and preference. We have worked with clients that have had franchisees ready to sign, and we have been able to get them to that stage within eight weeks, and other clients have taken up to 12 months.
If you can set aside a couple of hours a week to attend meetings and review the draft documents our team sends you, you could be ready within 6 – 8 weeks.
Greenfield franchises (Locations/territories you don’t currently operate in) fall into a predictable range. The franchise fee (paid by the franchisee for the grant of rights to operate) will typically sit between $20,000 - $50,000 on average, regardless of industry. The franchisee pays all other costs associated with setting up the operation, whether a mobile business (vehicle)or premises (lease and fit-out etc.).
Established Territory - Mobile (service based)
If you sell the rights to a territory with an established customer base, you will likely incorporate a more traditional valuation model (such as an NP multiplier + franchise fee). The franchisee will also pay other initial fees associated with setting up their franchise, such as a vehicle lease or purchase, training, equipment etc.
Established Bricks and Mortar site
In this scenario, the combination of a traditional business valuation and franchise fee component usually applies.
Fee modelling
Our team conducts comprehensive fee modelling with you to determine the proper fee structure for your model and the actual fee amounts.
This is not a requirement, but you may have customers you would like to allocate to your franchisee for several reasons.
A key part of the Franchisor's role in helping their franchisee get established is providing marketing advice and guidance to franchisees to assist them with finding customers. It is common for businesses we work with not to need to advertise because they have built a strong reputation in the market, and the business has grown organically. Our team can help you set marketing guidelines and resources for your franchisee suited to your industry, products, and service, ensuring that anything published by your franchisee meets your brand standards.
This one is a bit trickier to answer, but ultimately will come down to you committing to marketing your franchises across a broad range of sites and platforms consistently (you can’t sell a secret) and following up leads and enquiries quickly.
Getting your brand and franchise opportunity in front of as many potential franchisees as possible will give you the best chance for success, so we always recommend you ‘cast the net wide’. Advertising your franchises does not need to be expensive; we can provide a launch marketing strategy to point you in the right direction.
Don’t have the first clue about putting together marketing campaigns? We work with an experienced strategic partner who can assist you with this.
If you are worried you won't have time or don’t feel confident about managing the leads and enquiries in the beginning, we can introduce you to one of our franchise growth strategic partners, who offer this exact service to our clients.
You have as much, if not more, control with a franchise system as you do with employees. Franchising is a prescriptive operating model where franchisees must follow set systems and processes across all business areas. A robust legal document in place (franchise agreement) clearly outlines both parties' obligations and, ultimately, the consequences of breaching those obligations. The operations manuals are the most important documents in a franchise model because they contain all the detail and instruction for franchisees to follow and are an extension of the franchise agreement, forming a substantial part of the legal relationship.
Remember, people buy franchises because they want these systems and processes; they want robust, proven methodology and guidelines from the Franchisor to give them the best chance of succeeding. The more comprehensive the operations manuals, the stronger your franchise model foundation.
There are no guarantees of success in any business, including franchises. Franchisors are not required to guarantee success for their franchisees. Instead, they impart their knowledge and experience in running the business. It is likely that you have made many mistakes along the way and had some difficult decisions to make. Franchisees are investing in these learnings; there is value in this experience, and ultimately can result in a lower risk of failure for franchisees.
Franchise agreements have robust non-competition or restraint of trade clauses to protect Franchisors' Intellectual Property. The reality is that this happens far less than you would think. It would be unusual for a franchisee to buy a franchise and invest tens of thousands of dollars getting into the business to steal the Franchisor's IP. If this did happen, you would have legal grounds to take action.
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