Franchising – Sell Your Recipe For Success To Grow Your Business

23/02/2010

By Anita Brook, Accounts Assist

Franchising can provide an effective way to grow a business, selling the recipe for success of one company, which is then used by franchisees to set up their own business.

I set up Account Assist to expand while achieving a better work-life balance - if successful, franchising provides a real opportunity to grow your business without large financial risk and managerial headaches.


Franchising can work in a number of ways:

- Business Format franchising: A complete business package which is licensed to franchisees, allowing them to run their own business, but using your methods and...

...trading name. You then charge a fee to use this package, or take a cut of the profits.
- Selling a licence: Allowing someone else to manufacture and sell your product, but not within the confines of your business model.
- Using an agent to sell products on your behalf, or setting up a distribution agreement, whereby you sell your products to another business, which then sells on to its own customers.

Accounts Assist operates under the Business Format model, with franchisees running their own businesses guided by Accounts Assist's framework and support - you cannot simply hand over the formula and then forget about it, bad franchisee management could result in disaster.

In the first instance your company must have structured systems in place, which can be taught to fellow franchisees, to ensure that they can get their own business off the ground as quickly as possible.

Your franchisees are the most important element of the whole operation and will mean success or failure. They represent your brand and if they do a bad job this may have a knock-on effect across your company.

For potential franchisees, what's most important is that your business is profitable. Other factors... continued on page two >

 

 

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