Franchise a Business

A business can probably be franchised successfully if it is proven and successful in an established format; capable of being easily duplicated and easily learned; likely to be profitable for both franchisor and franchisees; and the management is prepared to accept considerable operational and cultural changes. More

First and foremost, the most important thing that you should be thinking about is unit level economics. The great franchisors, both domestically and internationally, know that profitable franchisees build a long term sustainable franchise network that has true value to everyone involved. More

Many franchisors are reporting that whilst franchise recruitment enquiry numbers are down, the actual number of quality enquiries has remained the same, so they continue to grow at the same rate as before, only with fewer applications to wade through. More

One of the more emotive aspects of any franchisor/franchisee relationship is that of the franchise fees. The setting of fees, both initial and ongoing, is very much a balancing act to ensure that both the franchisor and the franchisee achieve the rewards they deserve for their respective contributions to... More

Targets are important in franchising and take various forms depending on the type of franchise agreement that is being granted. In the typical unit franchise agreement, franchisors may want to set minimum payments to be made by franchisees to the franchisor. More

The profitability of each franchise depends on the franchisee successfully absorbing the franchisor’s know-how and faithfully replicating the business system uniformly across the network. It’s no overstatement to say that a true business-format franchise cannot exist without a practical, effective operations manual. More

Franchisors, who have failed to properly implement a risk management strategy and who are found to have made misrepresentations to prospective franchisees, can find themselves subject to substantial awards of damages. It is, therefore, in the franchisor's very best interests to make sure that it manages the risks by... More

This sample franchise contract is for illustrative purposes only for both potential/existing franchisees and franchisors alike. It must not be used by any party seeking to buy a franchise or franchise their business without taking the author’s prior advice. More

This sample master franchise contract is for illustrative purposes only for both potential/existing master franchisees and franchisors alike. It must not be used by any party seeking to buy a master franchise or master franchise their business without taking the author’s prior advice. More