Franchising

[richsrepair]

Hello all, I'm new to the forums. I have been running my own business for the last 2 years and in that time it has taken off much better than anticipated. I have looked into a few different business models concerning franchising.

It all culminates basically with Independent Contractors taking on the mantle of my business in small locations across the country. (I own and operate a highly successful repair center) My issue is how would I go about doing this. There is a huge amount of growth in my field however my business itself is only locally known in maybe a few hundred mile radius.

1. Model eliminates a full franchise fee and specifically binds the franchisee to purchase my products exclusively. At a low cost but generating a higher income base for them.

2. Second model charges a small franchise fee and still binds them to purchase parts from myself but at a slightly lower cost to offset the franchise fee.

I am doing well operating my own business however franchising is new to me.

Also all new ICs would have to purchase a kit from me which includes all information, tools and startup tools necessary to get started. (business cards, shirts, starter parts, how to videos and more, etc.)

I know this is not an easy deal and there is a lot to consider. What are my options and your opinions?

[Fred Gold]

Hi there,

Not sure what kind of model you have for the franchise, but you might consider displaying a detailed franchise fee chart on your website. You don't have to go into too much legal territory or fill the pages with numbers and asterisks, but giving a general outline of how to entertain potential franchisees is a good way to start.

[Overhemd]

I have always wondered about franchising, and I am still way off from being about to consider it for my business. Please, share with us your journey into franchise world as you go!

Good luck to you!!

[starpro57]

I thinks you don't have to go into too much legal territory or fill the pages with numbers and asterisks.hihi

[bane7]

Hello!

I am working with some company, that has the business model based on microfranchises. I really like that kind of model. When you buy franchise, you normaly get all the know how, knowledge, products. machines, everything.
I can most easily explain if we take franchise of Starbucks for example.
To have one of this you need cca 200.000€ for starting this franchise. There is cca 19.000 Starbucks around the world. They make in average 90.000$ of turnover in one month. When you get one of this, you need to pay to Starbucks some percentage of that turnover. So your costs are 200.000$ + monthly fee for the company. For that money, you get all the system, machines and everything included.
It is the same in our company. You can buy your own cafeteria on the internet. Products of our company are coffee, tea and hot chocolate. To all of them it is added special ingrefient - Ganoderma Lucidum, wich makes the coffee healthier. This is the strongest natural antioxidant in the world. You can check about it on google or in the nearest pharmacy.

So, about the business. For 65€ you buy your own franchise on the internet - internet store. Then you have 3 different size of starting packs of products, wich determines how much you get paid from the turnover that is made in your franchise. How it works? You get your web store with all the products. When people buy in that store, turnover is created. But what is more impressive is that you can create as many franchises you want, in more than 23 countries in the world AND GET PAID ALSO FROM THEIR TURNOVER. So that is the main adventage from Starbucks - for almost funny money you create your coffee business worldwide, and you get all the knowledge how to do it, where, with who,...

So for me this really is the best business model ever. I don't know, but to create system of franchising that works, on your own must be very hard and expensive. You need to developed business plan, logistic, warehouses, shipping, products, enployees,...
This are all the things, that people, who buy the franchise should get.

I hope, that my opinion helped you at least for a drop.

I wish you all good luck with your project.

[Fred Gold]

I'm a little foggy on the exact franchise as well, but agree that you should mull over creating a master sheet detailing as many specifics on starting, owning and operating a franchise. We started doing moving franchises and have a page dedicated solely to providing FAQs about franchising, monetary costs and so forth.