Franchising a Business in Australia with the Help of Franchising Consultants

Franchising a widely accepted methodology of business expansion that is incorporated by organizations across the globe. Due to its lucrative collateral and capital free nature, it is accepted as the ideal method for business expansion for small and medium scale businesses that do not have the necessary capital to undertake traditional methods of business expansion. Therefore, franchising being a liability-free format offers a lucrative proposition to such businesses. In this piece, we will provide you with a systematic guide to franchising effectively with the help of expert advice. 

If you are asking yourself the question that how to start a franchise in Australia then worry not as you have found the right place to seek all the answers to this question. With years of accumulated experience in the domain of business franchising, we can effectively help you to establish a robust and efficient network of franchise units. However, it is better to inform you beforehand that franchising is not an easy ball game and needs certain specific adherence in order to establish a robust framework of working entities. Here is a list of the ideal methods via which you can undertake an error-free approach towards franchising:

1. An essential part of your franchising endeavour is conducting thorough market researches and surveys. Research properly about your product or service and markets that you plan to penetrate. See whether there is demand for your offering in those markets. It is advisable that you engage in franchising only if you can see a substantial demand for your offerings in those markets.

2. Hire proper attorneys and lawyers for preparing a legal documentation, which can be replicated as and when required. This documentation will protect your business from any kind of unethical conduct. This is the most important part of how to start a franchise in Australia. 

3. Finding the right franchisees who fit the image of your brand is a task in itself. Therefore, the right franchisee-brand fit is essential in order to boost your franchising process. Hiring a proper franchising consultant will help you to solve this issue. 

4. Establishing a robust and replicable operational process is highly required. Set up a proper operational structure that can be incorporated into your franchise network. Hire a proper trainer and arrange for training processes to teach your staff about the importance of quality and integrity for maintaining the reputation of a brand. See that everyone in your business network working towards the success of your franchising follow a common code of conduct. 

Therefore, in the above-mentioned discussions, we have pointed out the correct procedure for franchising your business. This will help you to take careful steps towards successful franchising practices that can ensure growth and traction. Conduct thorough research on the demography and geography of the new markets that you plan to penetrate. Study about the possible reactions that people can give to your particular offering is essential for framing a proper working process as well as the marketing of your offerings.

The process gets even better if you have professional help to back you up. In the domain of franchising, such professionals or professional entities are known as franchising consultants. If you are on the lookout for such a consultant, then worry not as we have the perfect solution for you. The Franchise Institute is a leading franchise consultant based in Australia. Their expert help has enabled numerous businesses to their franchising success. With more than 15 years of experience under their belt, they can help you with almost all the domains of your franchising endeavour. So, what are you waiting for? 

How to Franchise My Business- 7 Steps to Success

Many entrepreneurs think that franchising is a costly affair and it is not meant for small businesses. Do you think in the same way? Then, you should change your concept because it is far from the reality. Franchising helps a business to grow rapidly. In this article, we will be focusing on seven steps that can help your business reap benefits from franchising.

1. Capital

Capital is the base of any business. Sometimes, it is the only obstacle for the small businesses. Sometimes, the growth goals of the companies outstrip their ability of funding. Franchising is an alternative backup of capital acquisition. It offers some sound benefits. One of these benefits is the fact that franchising allows the businesses to expand without the fear of debt or the cost of equity. Whenever you are thinking “how to franchise my business”, you must consider the financial issues. You should not forget that financial support is the most desired thing for a small business.

2. Speed of Growth

Every business owner is scared of the fact if someone else beats him with his own concept. This fear has valid grounds. Opening a single unit takes time. Many entrepreneurs have realized that franchising is the only way of gaining the position of the market leader before the opponents encroach on their space as the franchisees look after most of these responsibilities. Franchising enables an organization to compete with the larger companies so that they can saturate the market before the bigwigs can respond.

3. Staffing Leverage

Staffing leverage is an issue that compels you to think, “I should franchise my business”. Franchising enables the franchisors to operate effectively even with a leaner organization. The franchisees will deal with many of the responsibilities that otherwise would be shouldered by your corporate home office. Franchising your business will reduce your staffing responsibilities and you will be able to focus on other important issues related to the growth and development of your business.

4. Ease of Supervision

If you think from a marginal perspective, you will be able to find out that the franchisees offer a number of benefits. For instance, you will not be responsible for day-to-day affairs of individual franchise units. If a shift leader or one of the crewmembers is calling in sick in the midnight, it is not your call. Your franchisees are responsible for dealing with this. The franchisees will find a replacement or manage the shift. However, these adjustments won’t affect your business and financial returns. 

5. Enhanced Profitability

The staffing advantage and flexible supervision enable the franchises to run the business successfully in a profitable manner. As the franchisors can rely on the franchisees to undertake the location selection, lease negotiation, local market, recruitment, payroll, training, and other important functions, your organization will become much leaner. In this way, your organization can gain more profit. Therefore, whenever you are thinking “how to franchise my business”, you should consider the matter of profitability.

6. Energized Valuations

What helps you improve the overall valuation of your business? Many things can help you boost the valuations such as rapid growth, increased profitability, and organizational advantages etc. Once, you have successfully established yourself as a successful franchisor, you will be able to introduce a scalable growth model to reap multiple advantages.

7. Penetration of secondary and Tertiary Markets

 The franchisees should be able to enhance the unit-level financial performance that has some heavy implications. A qualified franchisee will generate higher revenues in comparison to a manager in the same locations. 

A Final Takeaway

Apart from this, your franchisee will keep track of expenses. In most of the cases, the franchisees have a cost structure that can differ from your cost structure. He or she can operate a unit that is profitable even after accounting for the royalties the franchisee must pay you. It will enable the franchisors like you to consider the markets in which corporate returns are expected to be marginal. Franchisees can operate successfully even in the aggressive markets that might not be high on your priority list.

To explore more about franchising, get in touch with the Franchise Institute.