Franchise Article

·         Contact the British Franchise Association (bfa).  The bfa have a vast amount of knowledge on the sector and for businesses looking to franchise this has been encompassed in their Guide to Franchising Your Business.  All potential franchisors should obtain a copy if they are serious about using franchising as a way of expansion

·         Attend a bfa-organised seminar for potential franchisors.  This will add further knowledge on how to become a franchisor and will enable you to hear direct from industry experts and ask them appropriate questions

·         Visit a franchise exhibition.  This will enable you to see how other franchisors market themselves to see if you can pick up any useful tips on the way that they market themselves.  The events normally include a number of seminars, which will enable yet more information and knowledge to be gained

·         Talk to existing franchisors.  They may well be willing to give general and practical advice on the advantages and disadvantages of becoming a franchisor

·         Use a franchise consultant affiliated the bfa.  These consultants have obtained accreditation with the bfa and will have a vast knowledge of the industry and the way in which a business can be franchised.  They will help to put a structure in place for your business and reduce the risks of making a mistake.

·         Use a lawyer affiliated to the bfa.  These lawyers are very familiar with franchise best practices and will be able to give general advice on the business in addition to providing a suitably worded legal agreement for you to use with your franchisees

·         Protect your brand by registering your trademarks and any patents.  A key part of establishing a franchise on a national scale is to be recognised.  The golden arches are a testament to the McDonalds brand

·         Be wary of any non-bfa ‘advisor’.  If they have franchising experience and are actively advising businesses they should join the bfa.  If not why, have they had an application turned aside?

·         Ensure you have adequate finance to become a franchisor.   This is extremely important, as many franchisors underestimate how much it will cost to launch and develop a franchise.  The costs can exceed £100,000 to establish a franchise operation, so having a contingency fund is essential.  This is particularly important as one of the biggest barriers to franchisor’s growth is the lack of suitable franchisees

·         Allocate separate resources to the franchise ‘department’. This should not only include finance but staffing levels, which may mean the necessity to recruit an experienced franchise professional.  Ensure that the core business’ trading performance does not suffer whilst the franchise structure is developed

·         Obtain a copy of the NatWest/bfa Survey.  This will enable you to benchmark your franchise offer against the industry standards

·         Keep the banks informed.  They will need to know details about the franchise to enable finance to be made available to your new franchisees.  They can also offer invaluable advice to franchisors at any stage of their development, as they deal with all franchisors across many sectors and are very likely to know of another franchisor that came across a similar challenge

·         Once the structure has been established join the bfa.  The bfa website is one of the single most important ways of receiving potential franchisee leads, according to the annual NatWest/bfa Survey

·         Undertake a pilot operation before a full launch.  This ensures any possible problems can be resolved in advance of a full roll out of the franchise and will prove that the business can be transferred to a new location

National Franchise Manager

NatWest