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Claim Your FREE Copy Of Our Latest Book
"How To Franchise My Business - A Step By Step Guide"
(Value £19.95)
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In addition to your FREE book you will also receive:
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30 days of Unlimited support via email from one of our franchising consultants |
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FREE training |
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FREE checklists |
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FREE copies of our famous business books |
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Learn how to dramatically increase
your business and profitability through franchising.
A Step-By-Step guide to the process
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Request Your Free Copy Now!
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We will email you your copy within just a few minutes.
We respect your privacy and will never pass on your details. |
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Welcome to Franchise My Business |
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Franchising your business is not to be undertaken lightly. It’s a difficult path with many potential complications along the way. However, it can also be a remarkably rewarding and profitable experience. If you’re prepared to put in a bit of hard work at the beginning, you may find yourself amazed at the finished result.
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This web site will guide you through the steps in franchising your
business: what you need to know, how you should go about it, and how to make a success of it. In other words, here is everything you need to know in order to successfully franchise your business and keep it going.
Franchising is not for everybody. Be prepared to put in a great deal of work and effort. However, the golden moment in franchising comes when you’ve completed the preparations and you can stand back, take a deep breath, and watch your business expand under the direction of others. Franchising is a wonderful opportunity. All you need to make it work is a little know-how. And that’s where this site comes in! |
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How To Franchise Your Business Info Guide |
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Claim your FREE franchising consultation now
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Request a FREE 'Opportunity Analysis' with one of our experienced
business franchise consultants. During the analysis
Franchise My Business will uncover the opportunities that exist within your business.
The detailed report will contain: |
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| Suitability for franchising |
| What you can charge for your franchise |
| The process explained |
| List changes needed to the business to enable successful franchising |
| Market analysis |
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No sales pitch - just good honest advice |
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Call 0845 020 4368 to book your free consultation |
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Benefits of franchising |
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| Create a national company. |
| Grow the business quickly with little investment. |
| Eliminate the day-to-day operational problems associated with the company. |
| Build a business that has a high re-sell value. |
| Build a business that does not rely on the directors being active every day. |
| Leverage the work you have put in to creating your company. |
| Receive a large cash injection into the company in a short time frame. |
| Obtain monthly management fees. |
| Allow the directors to concentrate on the areas of the business they enjoy the most. |
| Enables you to easily add other products into a nationwide infrastructure. |
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Why Franchise the business |
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You have developed a unique business that has the ability to be replicated throughout the UK. Franchising your operation will allow you to build a large national
organisation.
The franchising route is very lucrative - using franchising you can exploit your niche and expand very quickly. |
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The Process |
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The first step in franchising your business opportunity is to start by analysing the current business model and creating a new business model built around franchisee’s running regional teams to sell the product.
Step two is to work through the financial model to ensure that the business can satisfy both the business needs and the expectations of a franchisee.
Step three is to create the prospectus for the franchise. This will be used to sell the franchise.
Step four is to create a detailed and well laid out operators manual. This should be divided into two parts: one section for the franchisee and one section for the employees of the franchisee.
Step four is to decide on the initial franchise fee and the ongoing royalty payments. In the initial stages of launching the business franchise, the franchise fee will have to be kept at a low level to entice the first batch of franchisees. Once you have some franchisees running successfully then you will be able to increase the initial payment.
In step five we will start to create the web site and start on the marketing material to promote the franchise opportunity.
Step six is to create the training program for your franchisees. Some will require more support than others and a system should be put in place to cope with this. You will need to decide at this point who is going to actually carry out the training. Many franchisers outsource the training aspect to another up and running franchisee.
Step seven is to devise your franchise agreement. We work with a great franchise lawyer. We do not cut costs, as this document will end up being the cornerstone of your business opportunity.
Step eight involves creating a business plan for the franchisee with full financials, which can be used to secure finance for the purchase of the franchise.
Step nine is to complete all the marketing material including brochures and video presentations to market your franchise. We will also need to decide where to market your business opportunity at this point. There are now a multitude of mediums where you can promote your franchise ranging from franchise exhibitions, franchise magazines and franchise websites. Many companies even advertise their franchise offering in the national press.
Step ten Marketing and PR – we will devise a marketing plan to ensure a steady flow of applicants for the franchise.
Step eleven is to develop the recruitment process to ensure only the best applicants get invited to join the
organisation.
Once the first few franchisees are up and running we will get the franchise to be rubber stamped by the British Franchise Association.
Bear in mind that the above steps will be under constant improvement as the franchise network grows. All the marketing material, ongoing support and training will have to be developed as weaknesses are discovered.
Some of the franchisees will have to be given extra support, as they will never have managed a business before. Not only will you have to teach them how to mange your franchise but in some cases you will have to also train them in basic accountancy and admin skills.
Finally, a system will have to be created to deal with franchisees that are deemed unsuitable after they started managing their business. No matter how comprehensive our recruiting programme is, it will be very difficult to weed out all the unsuitable candidates until they actually start running their business.
The importance of getting a quality Franchise Agreement?
I need to make you aware the importance of getting a quality franchise agreement. Even if you decide not to go ahead with HMA Business Growth Solutions please ensure that you do not cut corners on creating this agreement.
The franchise agreement outlines the way your business will work within your franchise system. It gives both you, and you franchisee a clear understanding of the terms of your business relationship.
The franchise agreement also serves to ensure uniformity, which is beneficial not only to the franchiser but to the franchisee as well. If, for example, a customer has an unsatisfactory experience with one regional operation, he will be unlikely to want to do business with other regions. Therefore, the franchisee is under obligation to maintain uniformity, and the franchise agreement will establish parameters for that uniformity.
These parameters include the quality of services that must be provided by the franchisee and their employees. The franchise agreement also details what actions will be taken should you breach these parameters.
What should be Included in a Franchise Agreement?
First and foremost the franchise agreement should state that you have a fixed fee (your franchise fee) to pay in compensation for the privilege of working with your company.
The franchise agreement will indicate how the franchisees will be expected to maintain the aforementioned uniformity. |
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Other Provisions You May See |
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The agreement will state the manner in which franchisee’s will operate. There will be certain requirements and/or restrictions on the operation of the business.
Often a section is included detailing what training and assistance will be provided by the franchiser. This section would go over the franchiser’s responsibility to help a new franchisee get his unit going.
A franchise agreement will detail how work will be acquire for the franchisee and the level of turnover both of you are required to meet. Additionally, you will want to retain the right to review any operation and staff to ensure-you guessed it-uniformity.
A section about the operating manual will require that the franchisee will abide by it and adopt any revisions made to it by the franchiser. All franchisee’s will be under a confidentiality agreement concerning the operating manual-which remains the property of the franchiser-because the manual will divulge everything about the franchise's business plan.
The franchise agreement will have requirements concerning records and accounting. You will require your franchisee to keep certain records and to provide you with annual statements, which have been audited by a certified accountant.
Standards and quality sections-which can be very lengthy - will, again, provide for uniformity across the franchise system. We will need to ensure that all staff are trained and operate under your strict guidelines. This will be a lengthy section of the franchise agreement.
A section on modifications will basically state that the franchisor has the right to make system changes at anytime and require the franchisee, to make any changes.
The franchise agreement will specify what royalties the franchisee must pay for continuing to use the franchise's name, business plan and client contacts.
You will have some amount of insurance that you will require franchisees to carry, and this will be outlined in the franchise agreement.
Of course, there will be a section of the franchise agreement that states how long your franchise will last. In is normal to offer a ten-year franchise agreement. The agreements may or may not be renewed at the end of the agreement period at either party's discretion.
A "covenant" section will state what the franchisee can and cannot do. It will also restrict the franchisee from taking the knowledge and training provided by you to open a similar business.
A section of your franchise agreement will detail what will happen at the end of the agreement including what rights each party has at that time. This section will also deal with actions that will cause you or the franchisee to be in default of your franchise agreement and, therefore, subject to termination.
The franchise agreement will state that the franchisee will be required to obtain all permits, licenses, etc. necessary to conduct business in the operational area and that they must be in compliance with all laws and the Direct Selling Association’s guidelines.
A section will also state that any debts incur in the course of doing business are the responsibility of the franchisee and not the responsibility of the franchiser.
A "non waiver provision" will explain that all provisions of the franchise agreement are enforceable at any time. Although as a franchisor you might not enforce a certain provision at a given time, you still reserve the right to enforce that provision at a later time. The same rule will apply to fees owed by the franchisee.
Finally, the franchise agreement will designate that the franchisee are aware of the assumption of risk. The success of the business will not be guaranteed by the franchisor.
Why will people be willing to pay you for the franchise?
There are high failure rates for new businesses. The latest figures show that only 4% of businesses last longer than 10 years. It takes time, effort and experience to develop a business plan, secure financing, acquire the necessary licenses and get a clientele base. Indeed, it is wise for new business owners to have six months to one year of income set aside to subsist on while the business gets its footing. And, unless you have a wholly unique business idea, you will likely find yourself in fierce competition with well-established businesses.
Franchise businesses however enjoy a very high success rate. They are proven business models, which will work for anybody who follows the system correctly.
The franchisee will be working within a proven system and enjoy instant credibility. Additionally, you will provide ongoing support that guarantee’s success.
All of these facts add up to a quick return on the franchisee’s investment because your franchise business is operational from the moment you train the candidate.
Once you have a few franchisee up and running I am confident that we can obtain a high loan to value finance offer from a leading high street bank to help the franchisee's fund the purchase.
How much money can you make from franchising?
This is an example of a typical franchise. |
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| Cost of franchise |
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£25K |
| Number of regions |
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50 |
| Full national rollout |
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3 Years |
| Cost of acquiring franchisee |
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£2.5K |
| Cost of training |
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£2.5K |
| Sale of franchises (profit) |
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£330K pa |
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| NB. The first three franchises should be sold for £15K |
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| T/O per a franchisee |
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£30K per month |
| Commission Payable |
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£10K |
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| Head Office Charge |
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30% = £9K |
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| Head office management income Year 1 |
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£144K |
| Head office management income Year 2 |
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£288K |
| Head office management income Year 3 onwards |
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£432K |
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How long will it take to franchise the business? |
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A business can be successfully franchise within 90 days. To achieve this goal however takes a lot of commitment from all parties involved.
We will work to the following program:
Month 1
Analysis of current business
Model new franchised business
Agree new business model
Create financial projections and agree
Create prospectus
Month 2
Produce website – Submit to search engines
Produce operations manual
Start production of legal documents
Produce marketing material
Month 3
Create training program
Create recruitment process
Finish legal documents
Start PR and marketing of opportunity
Create business and financial forecasts for franchisees
Month 4
Recruitment and training of first franchisees
Month 7
Submission to the BFA (additional fee payable to the BFA) |
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How much will it cost to franchise the business?
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As you have seen franchising your business will generate a lot of additional cash.
HMA Business Growth Solutions to complete 95% of the work involved in franchising the business. We will cover all legal costs (approx £5K), provide all the marketing material needed and provide a complete plan to recruit franchisees. We will also provide ongoing support and changes to the franchise system as required for a period of three
years.
£9995 + vat payable in 4 monthly payments ( £2498.25 + Vat per month ). |
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Recruitment of Franchisees |
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Many franchises are happy to handle the recruitment of franchisees but find that this takes lots of effort and takes them away from running the new franchise. At HMA we can handle the complete recruitment process for you.
We will:
a) Advertise the franchise
b) Qualify the potential franchisees
c) Meet all potential franchisees
d) Any franchisee’s that we feel are suitable will be invited to meet with your company.
e) Close the sale and setup all legal contracts.
In return for handling this process and incurring many costs our fees will be 20% of the franchise fee. This fee will only be payable on success.
The costs of creating this franchise are relatively low compared to the returns that could be achieved. |
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Recent Articles
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| 7 Benefits Of Franchising |
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Our Services
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We Will Franchise Your Business For £9995 + VAT In Just 90 Days
Click Here For More Info
Want To Franchise Your Business Yourself?
Check Out Our DIY Franchise Kit
Click Here For More Info |
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Useful Links
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Remember - if we can’t increase your profits dramatically
We’ll work for you for nothing until we do.
The Business Franchising Specialists
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