Franchising is a very effective way to grow your existing business model quickly and profitably. However, one of the most natural questions for a potential franchisor to ask is: “How much does it cost to start a franchise?”
If you listen to conventional franchise consultants and lawyers, the answer is … a lot. In fact, somewhere between $55,000 and $150,000, possibly as much as $200,000, depending on your business type. (More information about general business start up costs can be found on many government websites giving advice on business.It’s not hard to see how the costs stack up when they tell you it will take $12,000 to $30,000 for an initial Feasibility Study; $5,000 to $12,500 on choosing the right franchise model and structure; another $10 000 to $30,000 on developing an Operations Manual; and a further substantial amount for your Franchise Agreement … and we’ve not even talked about a marketing plan, disclosure documentation, legal advice and sales training!
Looking at these inflated costs, it’s no wonder many would-be franchisors turn round and head for the hills. But do that and you will be turning your back on one of the most successful business models of the last 50 years.
And because I’m such an ardent believer in franchising, I’ve dedicated my entire career to the industry over the past 30 years, first as a franchisee, then as a franchisor in several different businesses, and finally as a franchise advisor to dozens of businesses.
In that time I’ve developed a systemised process for helping would-be franchisees achieve success – without undermining their cashflow.
So now when I’m asked: “How much will it cost to start a franchise?”, I’m able to say “a lot less than you’ve probably been told”. In fact, I can give you much more than you would normally expect from the highly paid accountants and lawyers you would have to engage for much, much less.I’ve brought together those three decades of experience into a seven-part system that’s simple to apply, but highly effective in converting an existing business into a successful franchise. Here is the process I’ve used to help dozens of business owners franchise their business, increase their profits substantially and work fewer hours:
ONE) Learn about franchising before you begin because if you don’t know how it works, you can’t make it work.
TWO) Assess your business’ suitability for franchising and whether you have the skills,confidence and personality to make it work. (take our FREE Franchise Suitability Test to do find out if you business is suitable for franchising)
THREE) Review and where necessary improve your current business operations before encapsulating them in clear and comprehensive documentation that others can easily replicate.
FOUR) Grow your franchisor business by strategically developing each of its component parts.
FIVE) Establish a pilot franchisee operation to test your systems and to show that the business can operate as a successful franchise.
SIX) Recruit your franchisees, selecting carefully so the right people are in place.
SEVEN) Think about the future. If you want your franchise to be a success, you must make sure you are offering effective, on-going training to your franchisees and keeping your brand current and fresh, protecting it from brand erosion.Well, to prepare your business for franchising is just $10,000 under my Do It Yourself Program, using my How To Franchise Simply Program. Choose the Done For You Program and you’ll have all your legal documents ready, as well as access to franchise specialists who’ll be working for you on territory creation and operating systems, and providing business coaching, and that will cost you no more than $30,000. In other words, $25,000 to $125,000 less than you’d pay going down the conventional route.
So the next time you wonder “How much will it cost to franchise my business”, rest assured that it can be done for much less than you once thought.
So if you want more information on how you can get started, get in touch with us on our contact page or contact us on 1300 960 136.