If you have been wondering if Franchising is right for your business, there are some key foundational milestones a business should meet before embarking on franchising as the growth strategy.
Foundations: Initial Assessment
Building a strong Business Foundation with enough scope to hold the weight and scale of the potential growth is important. Visionary business owners typically ensure these key elements are well developed in their organisations:
1. Strong Brand DNA
This is where every company differentiates and determines their core identity. Ensure the Business you intend to franchise has a clear Brand Identity that has distinctive brand attributes, values, style, brand differentiators, standards of performance, brand platform and brand promise; upon which to create competitive advantage, customer advocates, and memorable branded experiences.
2. IP Creation & Ownership
You need to own your brand’s Intellectual Property in order to exploit it. IP is an intangible asset to a company that gives your business exclusive rights to the use of the mark or creation to the exclusion of others and builds value to the business by giving investors the confidence to invest in or collaborate with the organisation.
3. Supply Chain
“Heroes may win battles, but it is excellent supply chains that win wars”
A supply chain is critical to the success of any business. For franchise expansion, this becomes even more important as your vendors start interacting with franchisees for efficient supply of goods and services.
Managing a franchise is not the same as managing your own outlets. Ensure there is a committed team to ensure growth.