What is Franchising?
There are numerous definitions but the one that we like is:
Franchising is packaging up the already successful processes, procedures and strategies that make the business profitable and presenting them as a ‘turn key’ solution that a Franchisee can easily operate for their own profitable ends…
Importantly this definition contains a number of key words and phrases:
‘…make the business profitable…’
Would you invest money in a business that wasn’t making money? Unlikely. The same is true of a potential Franchisee. Whilst franchising might be a growth strategy it is one which is only an option for profitable businesses.
‘…already successful processes, procedures and strategies...’
A business might be profitable but if it manages to be so in spite of organised operational chaos and unproven sales and marketing strategies then it’s unlikely that it’s either sustainable or capable of being replicated.
‘…a ‘turnkey’ solution…’
That’s what a good Franchise should be…a ready-to-go business that replicates the franchisors success. Subject of course to a structured and precise training combined with exceptional processes and manuals.
