|What or Who:|
|POST A REPLY||Viewed 697 times|
|Original Message Added : 7 Jul 2009|
Can you suggest the quickest way to get this opportunity infront of the public?
|Reply : 8 Jul 2009|
Franchising is a business arrangement between the Franchisor (you) and the Franchisee(s) in which, you allow the Franchisee to operate a duplicate of your fully proven and profitable business model under a licence arrangement (the Franchise Agreement) in return for franchise fees. In practice, most businesses embarking into franchising should be established for several years to prove the business model and to prove its' profitability.
Among many other issues that will define what is or is not a franchise, a franchisee who has built their own business around your model, must retain the value of that business and be able to sell it as a going concern - with your consent as to the incoming replacement Franchisee of course.
Risks to consider are that if you are not ready to franchise, you might spend £50,000 on trying to do so, and see nothing in return.
Next consider what the sales force will do for you. If they are making the sale, reporting this back to you for fulfilment and billing etc., with minimal input after the sale on their part, then this is unlikely to make a good franchise. However, you will clearly still make money on your margin after paying the sales force commissions and overrides etc.
Selling your product through a force of franchisees is possible, although at this early stage of your development, I would suggest that you will be better off to recruit self employed sales people to knock on doors and develop a number of territories for you.
As you develop this model, you should give great consideration as to how much of the business fulfilment and administration future franchisees could or should deliver and start to document these things. Also, document the way in which you'd want a franchisee to present themselves on your behalf based on the things a self employed sales person does not do or does poorly. What you will then be doing is putting together the basis of a franchise offering that can potentially come to market earlier than the normal models would suggest because of the proven sales of the sales network and the outline business model for franchisees.
If you do then start to convert sales people into franchisees, you need to understand that you will give more margin to a franchisee because of the additional work they do for you. However, it is quite common for conversion franchisees to up their game considerably and the increased turnover can often make up the difference.
Best of luck and I hope this helps - please feel free to ask more specific questions and I'd be more than happy to answer.
|Reply : 8 Jul 2009|
Thank You Bill
|Reply : 10 Jul 2009|
I agree with what Howard said. On Companies House record, your company was set up on 26/5/09,which is a new company. The company needs to have a foundation,not just in terms of business model and the procedure guide you need to set for the franchisee,but also the financial. These two things are the key elements for them to consider this franchise opportunity.
At the right start, it can be easier for you to have a sales team.
SC Lee Accountant
|Reply : 10 Jul 2009|
The product has been tested in full operation in the harshest envionments. Maybe we are not doing justice to the opportunity. Again thank you for your business awareness and intelect we will consider your reactions,
|Reply : 18 Jan 2010|
It is difficult to give a thorough advice on whether franchising is for you without learning more about your business.
Although, ideally, to develop a franchise your business would need to have traded successfully for at least one full year, it is not always necessary. You can franchise an idea. However, you would need to do a lot of prep work to ensure that what you have to offer will work for your franchisees as well as you. Otherwise, you run a risk of going out of business.
There must be a structured and a step-by-step approach to taking your business to franchising (please feel free to learn more on my website: http://alexparkov.co.uk/franchising_28.html).
I would caution against a quick launch of a franchise and concentrate on business development first. You may consider creating network marketing for your product initially. This model is increasingly more popular in the UK where your distributors purchase a product from you on a regular basis and earn commission on sale. You won't, however, be able to control the way they conduct their business. But this will provide you with time required to develop a franchise (if suitable) to ensure that you thought through all areas and the launch is successful.
Please feel free to contact me if you would like to talk more about your business: firstname.lastname@example.org.