Choosing your consultant

Franchising is now an established way of expanding a business with an excellent track record that is supported by the banks and professions.

It can offer a significant number of advantages when considering ways of expanding an existing business, not least of which is the reduction in capital required as franchisees invest into their own businesses.

Companies that do go down the franchise route can also continue opening company owned outlets, if they wish to do so. However, franchising is not a quick and easy route to expansion and needs to be carefully thought through and planned in order to maximise the chance of success.

Working with an experienced franchise consultant can assist in this area and help you to avoid potentially very expensive mistakes.

Details of franchise consultants affiliated to The British Franchise Association can be accessed via the BFA website: www.british-franchise.org. All of the BFA consultants are committed to developing franchise systems that conform to the BFA code of conduct and encompass the best practice procedures that have been developed by the BFA since the 1980s.

Here are a few basic guidelines that will help you decide if potentially your business could be expanded by franchising.

• The business model should be tried and tested
• The market place should be stable or growing
• The business model needs to have systems developed so that it can be replicated in other areas
• Financially, the proposed franchise business needs to be capable of generating sufficient profit to satisfy both the company as franchisor and the franchisees
• The franchisor/franchisee relationship is unique and the business principals need to feel comfortable working with others who are partners of a sort operating within the franchise network