Five Star Elements for Setting up a Franchise Successfully

Posted by Caitlin Harry on December 23rd, 2019

Franchising a business is no doubt a great idea for extending your business; but to ensure your success, you should educate yourself about five star elements essential for successful franchising. This article will help you explore these five star franchising elements.

Do you know what the best way of growing your business is? Briefly speaking, franchising is the best in growing a business. In Australia, it has always been a popular concept. More and more businesses are inclining towards the scopes and opportunities provided by this business concept. You might be surprised to know that setting up a franchise can be a simple task if you already own a business. All you need is to turn your existing business into a franchise successfully.

Before advancing the franchise, you need to determine whether your business is franchisable or not. Consider the following aspects to determine whether your business is ready for franchise4 or not:

Five-star franchising

Five-star franchising refers to a business with five features that contribute to the expansion of the business. The business must be able to operate as a branch network anywhere in the world. For example, you can look at McDonald’s. The biggest food chain was founded in California in 1948. Gradually the business spreads all over the world including Australia through the franchising concept.

Listed below are the five features that a business should possess in order to be franchised:

1.Image and System

Do you know what is called intellectual property? A clearly defined image and operating system are the main intellectual property of a business. It also encompasses the business name, the operational method or approach, and the way in which various elements of the business get aligned together to develop the franchise formula. Not even a single element of the packaging should be individual and secret.

Naturally, the trademark or the business name must be owned by the franchisor as he is the one who can license others to use it. To put it simply, while considering how to franchise a business, you need to evaluate the business and determine its image and operational system.

2.Proven format

The business must have a proven format. It implies that your business must be following a format that has led it to success. Only a business having a proven format can be franchised because the franchisees will be following the same format. If your existing format is not efficient, then it can’t help the franchisees bring profit to the business. Therefore, ensure the efficiency of your format, first.

3.Easy replication

Replicating an existing and proven business method is the core of the franchising concept. Therefore, your business model or format must be easy to replicate. Otherwise, setting up a franchise would be quite difficult for you.

4.Profitability

If your existing business is profitable, only then you should consider franchising because a failed business won’t be able to give you success even through franchising.

5.Franchising Culture

You should understand the relationship between franchisors and franchisees. Even if you have all the above-mentioned elements, it won’t help you enjoy successful franchising without a healthy bond with your franchisees. You should help your franchisees in learning the business by providing proper training. Moreover, both parties should maintain transparency.

Do consider these five franchise elements to set up a successful franchise set up.

Author Bio

James Corne is a franchise consultant who is currently associated with a leading franchising consultancy. He helps the franchisors in setting up a franchise and let them understand how to franchise a business effectively.