Franchise My Business

Now if we were to apply a franchising model of growth to this same retail shop the scenario would unfold quite differently.

In the franchise model the franchisor (initial business owner) is paid a license fee (usually upfront) in exchange for his/her knowledge and experience in establishing a successful business system. In addition to this license fee the franchisee then funds the shop fit our, stock, staffing, insurances etc This means that the business owner gets cash up front from day one and can then potentially open multiple outlets in a relatively short time frame. In addition the business owner is building up the value of his asset base.

As a first step the business owner would need to document all their business systems and 'know-how’ to enable a new operator to replicate the business “word for word” This business owner must develop systems that are detailed and accurate and then can be implemented by other.

At this point you may be thinking well that all sounds good, so why don’t more people franchise. The truth is that they are. Franchising in Australia is booming and it’s growing at rapid rate of just under 13% per annum. Australia has the highest rate of franchise business owners per capita in the world.

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