In 1965 Fred DeLuca opened a small sandwich shop. His product was a delicious sandwich that was a foot long, made from a “hogie” style bun, stacked with a variety of deli style meats and vegetables…
In 1974 the first Subway franchise store opened in Connecticut. As a franchise, the store was owned by its manager – it was up to him to make the business grow and be successful.
Businesses of many different types have achieved phenomenal growth, recruited highly motivated business partners and moved effortlessly into new markets, by shunning the company-owned model in favour of Franchising.
- Rapid growth of a business
- Low financial risk
- Reduced overheads
- Creates capital
- Lower “staff” turnover
- Easier quality control
- No day-to-day management
- Faster market penetration
- Systemisation difficulties
- Poor quality of franchisees
- Poor quality implementation
- Bad franchisee performance
- Long term loyalty
- Maintaining Trust
ROUTE TO GROWTH
Franchising has become popular because when you have a tried and tested business model, it can offer:
- A Safer Route To Grow
- A Faster Route To Grow
- A Lower Cost Option
- Greater Profit Potential
Franchising is an ideal way to replicate a successful business model, attract outside investment and recruit motivated “staff”.
The benefits are clear – both to the vendor and the franchisee. However, it is not the solution for a struggling business – you must resolve any strategic and operational challenges first. Successful franchises require careful planning, patience and capital.
If you decide that franchising is right for your business, we can help. Alchemy are experts in establishing and developing franchises, and we have considerable knowledge and experience of most industries.
If you are considering the franchise model as route to growth for your business, be sure to take as much advice as possible, starting with our free guide above, as well as sources such as the BFA, the IFA, and existing franchisors and franchisees.
LOWER RISK INVESTMENT
People aspiring to get into business are often less likely to fail via the franchise route than if they ‘go it alone’.
This is because franchisees are (or should be) buying a proven business model and given manuals are support from the franchisor. In other words, they don’t need to reinvent the wheel, or make the same mistakes as the founder did.
Of course, not all franchisors have taken the time to prove their business model. This is why we believe that your business should be sound, growing and selling a quality, enduring product or service. It is also why the Pilot (see below) is so important.
Many factors can influence the success of a franchise, including
- The business: not all businesses lend themselves to franchising
- The management and people skills of the franchisor
- The skills and expertise of the franchisee
- The franchisor’s ability to provide the support that franchisees need
- The availability of sufficient capital
No investment is without risk and all people are different: where one makes a franchise a success, another can fail, given all the right resources.
FRANCHISE YOUR BUSINESS WITH ALCHEMY’S COMPLETE PACKAGE:
1. FEASIBILITY PHASE
This phase starts the feasibility study and audit, where we determine whether you business is suitable for franchising. Alchemy has developed a comprehensive questionnaire to identify potential problem areas as early as possible. If your business is suitable, we will need to prepare a business plan, and possibly seek financing for the venture.
2. DEVELOPMENT & PILOT PHASE
During this phase we turn your business into a turn key product: writing the operations manuals, designing training courses, and creating the franchise offering. Key to this phase is the pilot: we will replicate the success of your business in another location, using different management and staff. This is essential in order to show potential franchisees that the business model works.
3. GOING LIVE PHASE
Sell your first franchise! We will employ all of Alchemy’s powerful sales and marketing strategies to ensure success. Depending on your requirements, Alchemy can assist with the recruitment of franchisees and even manage the franchise operation.