Thinking About Franchising

Discover The Best Business System For Your Business.

  • You benefit from 30+ years of experience helping franchise businesses in more than 20 marketplaces

Franchising Works.

According to John Naisbitt, celebrated author of Megatrends, franchising is the single most successful marketing concept ever. However, to become a successful Franchisor it is necessary to first demonstrate that the business is not only replicable but also profitable for both the Franchisor and their Franchisee Owners, otherwise the business will fail. Franchise Owners are working for themselves but protected from many of the uncertainties, traps and pitfalls associated with a conventional start-up business.

Franchising is a business relationship between the franchisor (the owner of the business which provides the products or services) and their franchisees who are given the right to use the franchisor’s business name and to market and distribute their goods. Full format franchising has been increasingly popular in Australia since the 1960′s. It now generates nationwide sales of more than $120B each year, and is continuing to expand.

Franchising is normally a “turn key operation” – the franchisor assists a franchisee in the setting up and running of their operation. A comprehensive operations manual outlines standards and procedures; training is provided, continuing guidance and supervision, together with a marketing plan and planned promotion of the individual operations. Both franchisors and franchisees benefit from a highly regulated industry with its own association, the Franchise Council of Australia, and a mandatory Franchising Code of Conduct.

Over the years we have crystallised our thoughts on franchising into the THREE Imperatives and

The FOUR Essentials of Franchising

1. The Business must be profitable and capable of replication

2. The Franchise System must be fair and equitable for all parties

3. The Management team should have or be able toacquire the expertise to:

  • Operate a single unit
  • Operate multiple units
  • Manage a franchise system

4. The business should have access to the capital required to underwrite the expansion and deliver the services promised to franchisees.

The THREE Imperatives of Franchising

1. You need to market your franchises to qualified applicants

2. You must make your franchisees successful

3. For the franchisees you can’t make successful, deal with the resulting problems in a timely and effective manner

To discover the process, benefits and costs of setting up a franchised operation, discuss your requirements at the initial free consultation with the team at Franchise Systems Group and benefit from our many years of experience in setting up and improving franchise businesses. Call us on 1300 658 311.