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the original business’s branding, values and services. They can also use top-notch CV is often not sufficient to be sure of this, so franchisors
their own capital, local insights and connections to drive the business will need to be ready to undertake extensive due diligence and
forwards – perhaps even into areas the franchisor alone would find background checks on an individual before the agreement is even
difficult to penetrate. drawn up.
Furthermore, the more franchises a business can create, the easier The perils of not doing so can, in the most serious cases, be detrimental
it may be for said business to build strong brand recognition among to both the business’s balance books and its brand reputation.
current and potential customers. Not all businesses are suited to the franchise model either. The
In a 2017 article by NBC exploring why chain restaurants were best franchises come from easily replicated businesses with wide-
particularly popular among millennials, for example, one franchise ranging appeal. Where a business model is more niche and complex,
owner cited “the consistency factor” as one of the biggest drivers. it may be harder to reap the full benefits of franchising without
“You can walk in to any one of our restaurants in any part of the significant upfront investment. Businesses in distress may also lack
country and expect the same great experience,” he said. “We’ve found the initial capital and resource required to develop an effective
all of our customers, especially the millennial segment, are drawn to franchising strategy.
that reliability.”
The fast-track
Not a sticking plaster Franchising is not the sole domain of the coffee shop or restaurant,
Potential franchisors beware though: franchising is not a suitable however. In fact, the BFA counts such diverse businesses as cleaning
option for every business. There are also numerous aspects of the services, aqua-natal yoga providers and sign makers among its franchisor
model that need to be carefully managed and backed by strong legal membership.
advice if they are to benefit the business in the long term. While not a sticking plaster for a failing business, the franchise model
Choosing the right franchisee is particularly important. A franchisee does offer a lower-risk alternative, both for the budding entrepreneur
will essentially take the reins and be the face of the business in a and the business owner on the lookout for the next step in the growth
new location, so a franchisor must be certain that they meet all the of their business. It could even be the catalyst to global expansion, like it
requirements in terms of skills, experience, values and integrity. A was Subway back in 1965.