You have developed a unique business that has the ability to be replicated throughout the UK or even the world. The franchising model allows you to expand quickly with little capital. Franchising the operation allows you to remove the day-to-day problems of running multiple outlets allowing you to concentrate on building a large national organisation.
The franchising route can be very lucrative - you can exploit your niche and expand very quickly.
The Process
The first step in franchising your business is to start by analysing the current business model and the ability to recreate it many times. At HMA we will provide a FREE consultation and provide you with a full written report on:
- Suitability of the business to be franchise
- The franchise fee that could be obtained
- The management fee that could be obtained
- Any changes needed to your operation to ensure a successful franchise
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 or HMA.
Step seven is to devise your franchise agreement. We have 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 organization.
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 franchise fee
Depending on the quality of your franchise the fee that you can charge for your franchise can range from £5000 to £500,000. Following our free opportunity analysis we will give you our recommendation based on our initial observations.
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.
Your franchise offering is very appealing. 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 we can obtain a high loan to value finance offer from a leading high street bank.
How much money can you make from franchising your business?
This varies from company to company but the income from franchising can be considerable. Our free opportunity analysis report will detail our expectations for your business.
How long will it take to franchise the business?
We have a fast track system that enables us to franchise a business in just 90 days. To achieve this goal however takes a lot of commitment from all parties involved. We provide as much resource as needed to ensure completion with 90 days.
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)
Our Fees
As you have seen franchising your business will generate a lot of additional cash. This option is also the quickest way to build a very profitable and high value business.
HMA Business Growth Solutions will 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).
This is a heavily discounted rate - we prefer to make the mass of our fee by linking our fees to your success.
In addition we will:
A) Advertise the franchise
B) Qualify the potential franchiseesC) Meet all potential franchisees
D) Any franchisees that we feel are suitable will be invited to meet with you.
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.
Isn’t that refreshing - A consultancy company that links payment to performance.
The exciting part of our service is that it won't cost you a fortune. We mainly work by charging a small project fee and accepting a minor percentage of the increased profits that we create for you.
We like to share in the extra profits we make for you.
This makes us highly motivated to achieve major increases in profit.
Plus—we guarantee that your franchise will be a success or we’ll work for you for absolutely nothing until we do
We are not like any other consultancy company you've ever come across.
