Ready to Franchise - thinking of franchising


Is your Business ready to Franchise?

Franchising your business can generate significant growth and profitability. Great franchises sell for large capital gains but under-performing or stagnant franchises don’t sell and you can waste a lot of money and expose yourself to many risks. You should carefully check you are ready to franchise before committing.

Test your readiness to franchise by answering some basic questions:

  • Have you sufficiently tested and proven your business concept?
  • What are the key success factors and risks?
  • Does the concept have longevity and is it adaptable to market changes?
  • Are you chasing scale or profitability or both? Why?
  • How will franchising work with your other channels to market?
  • How have competitors approached or fared with franchising? Why?
  • How much capital do you have to support your conversion to a franchise?
  • Why do you think you will be a good franchisor?
  • What is your succession or exit plan?

When we discuss the prospect of franchising with new clients we always assess:

  • Strength of your customer proposition (is it really a good business?)
  • Prospects for scaling your business in Australia or overseas
  • Business strategy
  • Financial performance and expectations
  • Quality of your business systems and procedures
  • Legal protection for your business
  • Your fit as a potential Franchisor
  • Strength of your team
  • Owners potential to manage the Franchise lifecycle

Listen to this podcast where we discuss how and when to franchise your business:




New concepts can be franchised.

If you have a unique or innovative new product or service that can be viably replicated and scaled then franchising is an option for growth.

You will need to establish your systems and operating procedures before you franchise and you will need to recognise that you are inviting Franchisees to take on more risk as your concept may be unproven.

Typically the prices achieved for new to market concepts where the model has not been proven will be lower but with a properly designed franchise model and a solid customer proposition this strategy can be a good way to accelerate your business growth and access capital via Franchisees.



Most business owners franchise their business because they want to grow the business and develop a valuable asset.

Business growth via Franchising inevitably involves stages or cycles such as those below:

We specialise in creating customised franchises and helping new Franchisors (you) develop, operate and grow your franchised business.

The first 6-12 months of a new franchise is critical to make sure you achieve your objectives and that your foundation franchisees are successful. This provides the springboard for accelerated growth. It is very important for you to reach critical mass in your network quickly so the franchise covers its fixed costs from ongoing royalties or fees rather than living off proceeds of selling new franchises. Many new Franchisors do not realise the importance of this and fail to reach this tipping point fast enough….so this is one area work on with our clients.

Then as your franchise matures you develop options to keep running it, diversify or sell. Successful franchise networks are an attractive asset to many investors and larger Corporates so you need to build and run your franchise in a way that continues to appeal to potential buyers.



Prospects of success are usually higher when:

  • The concept has been proven in the market and there is customer demand
  • The brand has some degree of brand awareness by customers
  • Your industry is stable or growing
  • Your product margins are stable or growing
  • You have profitable units (stores, Vans etc) with 2 – 3 years good trading history



Talk to us about your aspirations, plans and thoughts about franchising. We will help you get a better understanding of what is involved and what it means for you and your business.

If your business is not quite ready to franchise, we can help you prepare for franchising and make the most of your investment.