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Franchising can provide you with valuable advantages, and successful franchises leverage these into flourishing business networks. However, not all companies that franchise are successful – often for reasons that can be explained.
The reality is that while franchising has huge potential, it needs to be thoroughly researched and implemented. For some companies, a comprehensive approach to franchising might demonstrate early on that franchising is not actually financially feasible or a good fit.
If your company is one of these, you can trust that we’ll tell you upfront.
Have you considered franchising your business?
If you are thinking about franchising your business you can step off on the right path by arranging a preliminary assessment meeting with New Zealand’s leading consultancy for designing, structuring and starting a franchise business network.
Not sure how franchising works? Talk to the experts.
An example we are all very familiar with is the McDonald’s franchise business model, also known as business format franchising. McDonald’s, the franchisor, grants the right to sell McDonald’s branded products, following an aligned business format, to someone wishing to set up their own business, the franchisee.
The franchising organisational form has enabled McDonald’s to expand their restaurant chain, domestically and internationally, to a network now comprising more than 37,000 units. This would be otherwise unachievable through company-owned expansion alone.
Under a McDonald’s franchise, McDonald’s owns or leases the site and the restaurant building. The franchisee buys the fittings, the equipment and the right to operate the franchise for twenty years. To ensure uniformity throughout the world, all franchisees must use standardised McDonald’s branding, menus, design layouts and administration systems.
Franchisees pay McDonald’s an initial franchise premium for that right to operate the franchise, and then ongoing monthly franchise royalties and premises rental payments.
Download the Franchise Advantage Guide
Get your free copy of the Franchise Advantage Guide – What you should know about starting a franchise system. Find out more about franchising and whether franchising is the right strategy for you with our guide. When you’re ready to take the next step, we’d love to help you understand the opportunities available for your business in a free one-hour preliminary assessment.
We offer a free one-hour preliminary assessment meeting for anyone considering franchising their business. You’ll be able to get much more tailored and detailed information about your franchise opportunities.