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Franchising Feasibility and FAQ's

Posted by Carolyn Dufton on 15 February 2010
Franchising Feasibility and FAQ's

Have you ever considered franchising your business? Not every business is suitable for franchising and not every business owner is the right person to be a Franchisor.

Creating a system requires both an investment of finance and time and external professional direction. No business should proceed down the franchising path without a full analysis and awareness of their business.

Some Pre-Franchising FAQ's

Q. Can I put together my own franchising system?

  • Technically yes, providing you comply with The Franchising Code of Conduct and prepare the relevant documentation. Being mindful of not contravening the TPA which governs the code.

Q. I think I know how much to charge franchisees. Can I make the decision about this?

  • As a Franchisor you have huge potential and scope to charge a wide range of fees. A franchise feasibility study  will provide insight into how and what to charge.

Q. Is creating a franchise system an expensive process?

  • Creating a franchise system responsibly is a lengthy process. None of our clients have ever complained about their investment after the process as they have seen how much work is involved.

             fp+ have an instalment plan in place which eases the process.

It is common for the sale of the first franchise to cover the franchise costs.

Q. I don't know anything about franchising! How do I know if franchising is right for my business?

  • Firstly read as much as you can about franchising.
  • Secondly, the feasibility study is comprehensive and will provide clarity about whether you and your business are suited to franchising.

Q. How long will it take to franchise my business?

  • After the feasibility study has been completed, it is usual for a 6 month process to be undertaken. During this time the system is created together with franchise documentation.

Q. Do I need a lawyer?

  • Yes and it is imperative that a lawyer with franchising experience is used. Engage a franchising advisor who will work collaboratively and extensively with lawyers to create the full franchising complement.

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Author: Carolyn Dufton
About: Carolyn Dufton Dip. Bus (Franchising) heads the team as the owner and manager of franchisingplus. Carolyn has a wealth of small business experience, and many years of hands on franchising experience.
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Tags: Franchisor Franchising

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