Want to franchise your own business? Gain insights from the franchise development specialists: 7 questions, 7 perspectives

By Ashtons Franchise Consulting

Whether you are new to franchising or an experienced franchisor introducing something new to your network, taking that next step can sometimes feel like stepping into unchartered territory.

Here, the team at Ashtons Franchise Consulting brings a unique perspective as well as a wealth of experience – from strategic planning to operational know-how in the franchise industry – and shares insights, wisdom, and actionable advice on all things franchising.

1. What is the number-one top tip for a business owner looking to franchise their business?

Rob Hall says: Might sound obvious, but for me it’s as simple as being super clear on why someone would want to be a franchisee with you, rather than set up the business on their own. Whilst it may seem straightforward, often the answer is not so obvious.

The key is developing a clear and compelling value proposition. This means identifying what sets your business apart from competitors and why potential franchisees would choose it over others. It could be a unique product or service, a distinct brand identity, exceptional customer service, innovative technology, strong lead generation, or a combination of these.

Once you have defined your USP, you need to ensure that it can be effectively replicated across multiple locations. Create standardised processes, systems, and training initiatives that enable franchisees to maintain the quality and consistency expected by customers – factors more likely to lead to a successful and sustainable franchise system.

2. What strategies can franchisors use to attract franchisees?

Karl Sandall says: To attract franchisees, franchisors can employ various strategies:

• Establish a strong online presence by utilising social media platforms, franchise directories, and your website. Engage with potential franchisees through informative content and webinars.
• Participate in events like franchise exhibitions and local business networking events to connect with aspiring individuals face-to-face, fostering relationships and promoting your franchise opportunity.
• Tailor your marketing efforts to reach individuals with relevant backgrounds and interests. For example, AdSmart by Sky campaigns, targeted online advertising, industry publications, and direct mail campaigns to attract potential franchisees who align with your network’s requirements.
• Use franchise consultants. Partner with reputable franchise recruitment firms who specialise in promoting a franchise opportunity and assist in matching franchisees with suitable opportunities.

3. How much information should be given away to prospective franchisees at the beginning?

Nick Williams says: Franchisee relationships evolve through three key stages, each requiring the provision of specific information:

• Initial Enquiry: Upon receiving an initial enquiry, the franchisor should respond with general information, often in the form of info sales details or a franchise prospectus. This aims to whet the appetite, provide initial information, and encourage contact.
• Discovery Stage: Protected by a Non-Disclosure Agreement (NDA), detailed information should be shared regarding roles, financial projections, operational aspects, training program specifics, expectations, and additional investment requirements in a Franchise Information Memorandum document. This stage provides the franchisee with ample information to make an informed decision on whether to invest.
• Post Sign-Up: Once the franchisee is on board, they will need to know every aspect of running the business at their outlet level. Marketing and branding guidelines will be set out, training will be given, and the manual provided.

Throughout these stages, only essential information necessary for daily business operations should be disclosed – trade secrets should remain secret.

4. Why is it necessary to register a trademark?

Richard Langrick says: Trademarks that are properly registered uniquely identify the goods or services offered and protect the business owner from other businesses using the same trade or brand name or logo for a 10-year period, which is renewable. At the heart of every franchise legal agreement is permission for the franchisee to use the franchisor’s trademarks for the life of the franchise. This licence can only be granted if the trademark is registered, maintained, and therefore protected on the relevant trademark register.

Registering the trademark not only protects the franchisor from misuse of the trademarks, but also gives the franchisee protection from competitors using the same or similar trademarks. This adds considerable value to the franchise offering, for both the franchisor in selling franchises, but also the franchisee when selling the franchise.

5. How can franchisors effectively manage their franchisees?

Rebecca Newenham says: Your success depends on your network as a franchisor, so investing time in your franchisees is essential. Being a visible franchisor who shows up and supports your team will enhance their performance.

Communication is critical. While virtual meetings are convenient, there’s significant value in physically meeting with your franchisees, even if it is just for a few hours. Group meetings are excellent for sharing knowledge, but do not forget to check in one-on-one to understand how individual franchisees are feeling.

Regularly review each franchisee’s business plan and performance against their objectives. If things have gone well, celebrate! Motivate them to achieve more by celebrating and sharing their success. If they are falling behind, work together to create action plans to get things back on track.

Share best practices amongst your team. Encourage a culture of collaboration and ensure that anything that works for one franchisee is shared across the network to benefit everyone.

6. Who should handle the marketing – the franchisor or franchisee?

Phil Mowat says: In franchising, deciding who should handle the marketing depends on several things:

• The type of business and the industry it is in
• The overall goals of the marketing
• The measured effectiveness of national vs local campaigns
• The amount of control the franchisor wants to have over the franchisees
• The ability and skill levels of the franchisees to run the campaigns

The franchisor normally sets up the marketing plan and strategy and deals with any national advertising and branding. It’s vital that the brand’s look and message is consistent across all their franchisees, so they will prescribe to their franchisees what they can and can’t do. However, each franchisee will know the intricacies of their local area, so they will often handle local marketing like adverts in the neighbourhood or sponsoring local events.

By talking and working together, they can make sure that local marketing fits with the overall brand, and everyone benefits from the combined efforts. It’s like finding the right mix: keeping the brand strong while also being flexible enough to fit into different communities.

7. What support services should be provided to franchisees?

Charlie Dickson says: In my 40-plus years of industry experience, successful franchisors are those businesses that deliver comprehensive initial and ongoing support services to their franchisees.

As well as guiding franchisees to build sustainable, profitable entities, supporting franchisees ensures consistency of product and service across the entire brand. This is crucial as the network grows and develops. In essence, franchisor support safeguards smooth operations.

Support should include training programmes, operational support, premises selection, design and fit out, marketing and promotions, technology, financial guidance and reviews, quality control, supply chain management, R&D, new innovations, new products or services, audits, and standards compliance.

Supporting franchisees creates a collaborative culture, so maintaining open and regular communications is a key aspect of support. For example, regular meetings with franchisees, recognition and awards events, and conferences are important in creating successful franchise networks. Supporting and empowering franchisees to succeed is an essential element of franchisors’ responsibilities and creates a motivated, profitable network that will attract new franchisees to the brand.

Who are Ashtons Franchise Consulting?

A leading franchise consulting firm with offices across the UK, #TheFranchiseDevelopmentSpecialists.

We help business owners franchise their businesses – turning their initial thoughts into reality. We are known for our honesty, dedication, detailed approach, and professionalism.

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