Franchising a Company in New Zealand is about marrying a brand, a business system, support strength and local investment. Offering effective and well organised ownership, operation, and alignment of hardworking franchisees. Today, in New Zealand, like many overseas markets, a high proportion of retail sales are now conducted via franchising and licensing networks. Many franchisors and franchisees have benefitted from the advantages franchising can provide.
Consumers have also benefited, as the scale and sophistication of many franchise networks has brought efficiencies and qualities to the end-customer offer. Yet while many franchisors and franchisees alike have succeeded, a good number have not. Indeed, there are many examples of franchisors and franchisees that have struggled with their franchise systems and their franchise situation.
Franchising a company is down to experience and business success
For more than 30 years now, Franchize Consultants has worked with new, high growth and established franchising companies. We have helped companies investigate and implement franchising. And we have also helped many companies that did not seek good initial guidance review their franchise systems and seek and implement ways to improve results for franchisor and franchisee alike, as well as for many co-operative and licensing networks. All of that work and experience continues to highlight that absolute importance of franchising properly in the first place. Hence “Do it once. Do it right.”
Know the Key Franchising Success Factors
A franchise system requires the right structure, the right franchisees and the right support and leadership. A bit like a high-performance race car, common deficiencies in any one of these elements (i.e. the car, driver or team) can lead to not just suboptimal results, but disastrous results for franchisors and/or franchisees alike.
Get the Right Franchising Advice
For a company considering franchising, it is imperative that they get the right upfront advice. They need great guidance on how franchising may benefit their business and, in turn, the right structure and management to make franchising successful. That is where a competent franchise consultant comes in.
Take the first step for Franchising a Company with a Franchising Feasibility Assessment
Franchising is simple in concept but much more complex in the range of ways and configurations in which it can be applied. Franchising is also not for every company. In some instances, the returns are simply not there for it to be viable for both franchisors and franchisees alike. For these reasons we recommend a first phase of franchising a company to be a comprehensive Situation Analysis and Franchising Feasibility Assessment. The Situation Analysis and Franchising Feasibility Assessment component, is a critical element of the Strategic Planning process.
Because it informs a client’s decision:
a) to pursue or not pursue franchising further, and
b) on how many aspects of the franchise structure should be best configured or organised.
This is essential as the decisions made at the outset go on to have long-term consequences for the business. There are many key areas that need to be worked through relating to the owners, the existing business/businesses and the market structure. In turn, in methodical and appropriate approach critical decisions need making on key aspects of franchising structure covering areas like the franchisee unit-level configuration/s, the division of franchisee and franchisor functions, roles and responsibilities.
The franchise support model provided to franchisees, the franchise support office structure, and the types and levels of franchising fees. In turn, each of these areas needs to be evaluated from a financial standpoint to sufficiently attractive potential returns are achievable to franchisees and the franchisor-alike. After all, franchising involves a big financial and emotional commitment on both sides.
And whilst franchising can provide both franchisees and franchisors with outstanding returns, it is not always the outcome. In our experience, there are often many reasons why poor results are achieved. And these invariably go back to what should have been the first step a new franchisor took (regardless of size) – to engage a competent franchise consultant to undertake a comprehensive Situation Analysis and Franchising Feasibility Assessment. To find out more send us an email or follow and message us via LinkedIn, Facebook, Twitter or Instagram.
Contact us to help franchise your business
We are NZ’s Leading Franchise Consultancy. Talk to ss first to get it right! Got a question that can’t wait? Give us a call on +64 (9) 523 3858.