Franchising Your Business …

Just a short note today, as often I’m asked by people if I think they should franchise their business and it happened again today …

Simple answer, if someone who runs the businesshalf as well as you could do it and the business has great margins then yes.  You see franchising is brilliant if done correctly, especially for people new to owning your own business.

But, as a franchisor maybe 20% of your franchisees are going to do it as well as you did when you started the company, so don’t expect the 80% to.

As for profits, it kills me to see unproven franchise models being sold when even the original owner couldn’t make money from it.  It’s almost fraud, to me it feels like a rip off.  The model has to be proven and usually that takes at least 30 franchiseunits operating to prove.  Also the franchisor HAS to make new sales to stay profitable usually until they get about 50 to 100 franchises running where royalty keeps them strong and profitable.

The royalty fee you charge a should be covered in the economies of scale the franchisor brings with buying power and the like, so that doesn’t really matter, but the business has to be profitable …

So, overall, good margins and an easy to run and manage business are two of the things I look for in a franchise.

I am currently looking to buy more franchise companies and build them into a global entity …

All the Best, Brad Sugars

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6 Responses to Franchising Your Business …

  1. Padraig says:

    so what are the best franchise’s to purchase ?

    • bradsugars says:

      Padraig, the best franchise is different for every person, take for example my company ActionCOACH, for some it’s perfect for others not suited at all … doo your homework and work out what suits you as well as what company you want to join. Brad Sugars

  2. Michael Kiick says:

    Three critical factors in what makes a quality franchise company and how to measure the concept.

    1. Has the Franchisor validated(is there a National or International want or need) the industry they are entering.
    2. Have they created a working model/prototype that can sustain and be profitable for all.
    3. Can they duplicate it so others can follow it to achieve the goals they desire.

    In franchising, it has to work for three parties to be successful.
    1. The Franchisor
    2. The Franchisee
    3. The Client/Customer

  3. David "Dutch" Holland says:

    I joined ActionCOACH for the following reasons;

    1. Great Business model with equally good margins and leverage.
    2. The caliber of the People in the organization.
    3. Support and Training are all World Class.
    4. The ability to deliver positive results to Clients

    I think buying a Franchise, one has to recognize that there has to be a “fit” between the Franchisee, Franchisor and the Product or Service being delivered – only if all three are aligned will the model work.

  4. Andrew B. Hartono says:

    I’m developing my family business so that i can franchise it.
    After join ActionCoach you’ll understand that the only reason you build a business is to sell it.
    Build your business and sell it, your highest profit is usually when you sell your business 😀

    Thank you ActionCoach,
    Andrew B. Hartono,
    (ActionCoach Client)

  5. Elyse Glathar says:

    Business coaching helps owners of small and medium sized businesses with their sales, marketing, management, team building and so much more. Most importantly, just like a sporting coach, your Business Coach will make you focus on the game.:

    Ciao for now
    <http://www.caramoantourpackage.com

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