Ever thought of franchising your business? The idea is tempting, especially for entrepreneurs who wish to further market their brand. Below are the advantages and disadvantages of putting your business into franchise, as explained by commercial lawyers Creagh Weightman Lawyers.
Builds Your Brand
When you franchise your business, you allow your brand to grow and become more visible. Through franchising, you can turn a local brand into a national or even global name by letting other entrepreneurs sell your products and/or services.
Maximises Your Profits
Apart from royalty fees, franchisees must also pay other costs such as legal fees, build-out costs, and initial supplies before franchising your brand. Franchisee charges immediately increases a franchiser’s revenue, allowing to build a business’ overall market value.
When you’re able to build your brand, then you are also able to build your market. Franchising your business allows you to push above competition and target a specific market. As the market grows, then you can gradually build credibility and hook other audiences.
Loss of Control
Diving into franchise gives other entrepreneurs the freedom to control your business in terms of marketing and management. Each franchisee is an entrepreneur in their own right — your operating manual will control your business, but know that other elements will soon change.
Finding the Right Franchisees
Building a network of franchisees is easy, but finding the right ones for your business is tough. Make sure that you choose the right people as they will help your company grow and succeed. Taking in wrong franchisees can harm the foundations of your business and your established network.
Franchising your business isn’t all about selling rights. It’s also about managing a network and serving their needs every once in a while. Make sure that you have enough staff that will assist you in handling your franchise and looking over important business matters.
Franchising a business in Australia is one of the most popular ways to build a brand and increase revenue. Before diving in the franchise industry, seek the advice of a commercial lawyer and experienced entrepreneurs.