You may think your type of business will work almost anywhere and fit anyone? It’s time for a second opinion from specialists in your business sector to ensure that there will be enough interest in your concept to build a strong network of franchisees.

To grow your business through franchising, you will need to learn about recruiting franchisees, and then training, coaching, educating, motivating, leading and supporting them. You will need to hold meetings, and, eventually, conferences for franchisees. You will have to implement specific franchise technology and software systems. You will need to understand about territory analysis, and may need to get involved in leasing and construction (for franchises requiring premises). Product distribution; research and development; marketing initiatives both locally, regionally and nationally.

If you’re successful at finding franchisees, franchising becomes your main business. Your leadership abilities are fundamental to growing and sustaining a franchise company.

They have the rights to independently own and run the business. The relationship must be treated as a working partnership because franchisees will speak out whenever they feel they need to. They offer ideas and support the brand, but will be quick to criticise if they feel let down. A great relationship with franchisees can lead to untold success, but a poor relationship will only cause frustration and problems.

If you’ve been thinking that franchising is an easy way to create profit through selling franchises, then think again! The franchise license fees that are paid to you are largely re-invested back into your system from the start, allowing you to put in the infrastructure you need to ensure profitable growth.

Monetary rewards will come, and they may be beyond what you thought was possible, but a long term plan needs to be looked at (3 – 5 years minimum) to decide whether franchising makes sense for you.

Your future relies on the success of each franchisee that joins you. You must therefore offer an attractive business opportunity that is also viable, and profitable to both them and you.

Any shortcuts taken in these early stages of development can create cracks and weaknesses that become almost impossible to fix later on, and these kind of mistakes can be catastrophic for the franchise business you’ve created, as well as the franchisees who have trusted, and invested their money with you, and possibly made great sacrifices, or taken big risks to do so.

If you want to grow your business without having to ‘hold the hands’ of your franchisees and without spending much time with them, then franchising is probably not right for you.

Many people make the mistake of franchising their business because they believe they will be able to attract some venture capitalists who see the value in the network they’re building, and the structures they’ve put in place.

This can certainly be a secondary, and long term goal, but the primary reason you should be franchising is to create a secure and sustainable network of franchisees, which has the potential for creating an excellent scenario for you, and with this, comes real net asset value…