You have a business and it is going great guns, so that must mean it is well placed to be expanded via franchising, right?

Well, maybe! Having a successful ‘one-off’ business is no guarantee to this success automatically being replicated on a greater scale through the franchising model.

Here are five tips that will help in this process:

No. 1  Longevity

You must have operated your business for a reasonable length of time (at least four years) to show that it can survive seasonal variations in demand and is based on a sustainable concept, not just a passing fad.

No. 2  Profitability

Profits are important, if you have an unprofitable business then forget about franchising it. Don’t forget that your potential franchisees will also be paying you a royalty and various levies. Will the existing revenue in the business withstand at least another 10% take-out, and still deliver a reasonable profit level for your franchisees?

No. 3  Know Your Market

A thorough understanding of the market in which you operate. Be totally across your current and potential competitors and the viability of expansion. Don’t forget to include some “what ifs” in your competitor review. What if an unforeseen ‘category killer’ enters your market? Or a major digital disruption or technology breakthrough is imminent?

No. 4  All Things Documented

If your systems and processes are not documented then they are not a system. They must be able to be consistently replicated to achieve scalability. You might be able to show someone what to do, but if there are no documents to refer back to, how can you expect them to follow what you have shown them, consistently when you are not there? How will you, as a franchisor, ensure that your franchisees and their businesses are compliant? If you can’t ensure compliance across your network, then you are putting your brand and ability to sell the next franchise at risk.

No. 5   Duplication

This is a very important step. If you do not open your own additional outlets, how do you expect anyone to believe your claims that your concept is proven? Through duplication, you will learn more about the transferability of your concept and the systems needed to support a growing network. Prospective franchisors should open at least one or two additional outlets, ideally in different locations with different demographics. If you can successfully duplicate profitable outlets, this is a positive sign for a successful franchising network, and these may become your training centres or the first to be offered for sale to future franchisees.

Franchising your business can be a complex process. To learn more about franchising your business there are two ways we can help.

  • Fastest and Most Personal Approach                 

We can coach and mentor you in our 100 Day Coaching Program.

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Download more information about the program here.

  • More Laid-Back Approach

Alternatively, we invite you to do our online How to Franchise Course where you will have access for 12 months on all of the fundamentals you need to understand to franchise your business.


You also can join 5,000+ others and subscribe to our e-news to keep up to date on franchising issues and trends.

We aim to be of service to you throughout your franchising journey.  Please don’t hesitate to email Kerry at if you have any questions. Curiosity is the best way to start learning so please reach out.