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Franchising: why ‘franchise’ used to be the scariest word in business
Full company-operated businesses will tell you that franchising your business is a big mistake as you will lose control of the business, brand and operations.
Admin
May 9, 2022
Traditionally, full company-operated businesses will tell you that franchising your business is a big mistake as you will lose control of the business, the brand and the operations.
People thought that franchising a business means no ability to ensure compliance, quality and consistency and can essentially mean you lose control over operations and over your brand. Way back when, that may have been true, as businesses did not have the proper tools and resources in place to maintain control - particularly if they were growing too fast!
But that’s just not the case anymore. With all of our knowledge, with sophisticated systems and tools and with strong regulations in place (particularly in Australia with the Franchising Code of Conduct), we have everything we need to ensure the success of a franchised business.
Franchising can be a huge success when you have the right tools and systems in place.
In Australia alone, we have seen the success of many franchises when they have the right tools and the right processes. For example, the Australian grown franchise: Just Cuts. Just Cuts have been operating since 1980 and have approximately 190 salons. This franchised business has seen major success and has gone above and beyond what anyone could have imagined!
Much like Just Cuts, any franchise business that has an effective model to success and has all the right tools, resources and systems in place to be a prosperous business, can enjoy the many benefits of franchising and achieve major success in business.
Franchising has changed a lot in recent years. The industry is now under a strict Code of Conduct that assists both franchisees and franchisors to run a successful and compliant franchise business. There are also many industry bodies/organisations who assist the franchising community with education, recruitment, lobbying and more. Now more than ever, franchise businesses are poised to achieve success, as they have all the resources and tools in place to do so.
Get your systems in check!
Whether you are a budding franchisor or an established franchise business, you need to have the right systems in place to achieve success. You will need to take a good look at what systems and processes you have in place to ensure continuity, compliance and manage operations. Will these processes and systems be sustainable as you grow? If you’re doing everything manually with paper and emails, the answer is almost certainly no. When you have hundreds or even thousands of employees, it’s impossible to keep track of everything manually and you cannot be sure that each staff member is being compliant.
If you are already using a system (or systems) to manage all of your operations, it might be time for an overhaul. You essentially need to look at the scalability of your systems and whether they are actually helping you to achieve success (and not making it more difficult!) And if you have several different systems, you should be looking into whether they integrate with each other or whether there might be a good alternative that either integrates well with other systems or can do everything you need it to.
Talk to the experts
Getting advice from experts in the field is always a great idea! Franchise consultants can greatly assist you with the franchising process, particularly when starting out. Consultants can help you with all the legalities and complexities of delving into the business model, find franchisees, help you with locations, assist with writing your operations manuals and so much more. They may also offer ongoing support after the initial franchising process, which can be extremely helpful as things often change in the sector.
If you choose not to speak with a professional consultant, it’s a great idea to seek out other franchisors and/or get involved with some of the organisations that play in the space (such as the Franchise Council of Australia) who can assist you at all stages of the franchising process.
It never hurts to get some outside advice!
It’s a serious mistake to believe the outdated views of franchising. Franchising can be an extremely successful business model when you have the right tools, processes and expert advice to help you achieve success!