Franchising Your Business …

Just a short note today, as often I'm asked by people if I think they should franchise their business and it happened again today ...

Simple answer, if someone who runs the businesshalf as well as you could do it and the business has great margins then yes.  You see franchising is brilliant if done correctly, especially for people new to owning your own business.

But, as a franchisor maybe 20% of your franchisees are going to do it as well as you did when you started the company, so don't expect the 80% to.

As for profits, it kills me to see unproven franchise models being sold when even the original owner couldn't make money from it.  It's almost fraud, to me it feels like a rip off.  The model has to be proven and usually that takes at least 30 franchiseunits operating to prove.  Also the franchisor HAS to make new sales to stay profitable usually until they get about 50 to 100 franchises running where royalty keeps them strong and profitable.

The royalty fee you charge a should be covered in the economies of scale the franchisor brings with buying power and the like, so that doesn't really matter, but the business has to be profitable ...

So, overall, good margins and an easy to run and manage business are two of the things I look for in a franchise.

I am currently looking to buy more franchise companies and build them into a global entity ...

All the Best, Brad Sugars

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About bradsugars

Brad Sugars’ business career began when he was seven years old and he decided to lease his Christmas presents to his brothers. After earning a degree in accounting from Queensland University in Brisbane, he became a "serial entrepreneur," owning or running more than 30 different businesses, including a magazine, a pizza wholesaler, and a women's retail boutique - using a series of systemized tools to grow sales and profit in each one. After teaching his marketing techniques to Robert Kiyosak's students in Hawaii, Brad developed his own seminar company and expanded his one-on-one coaching practice to include virtually every industry and business category. The result was Action International, one of the first "business coaching" companies in the world ­ focused exclusively on business education, team building and profit growth. Expansion into Asia prompted Brad to franchise Action International ­ allowing the company to taking advantage of a number of rapid growth opportunities. Action then built a network of offices in the United States, Canada and Europe. After a rebrand in 2006 to the current ActionCOACH identity, the company also added South Africa to its list of global franchise offices. Today, ActionCOACH is ranked as the world's leading international business coaching franchise, with more than 1000 offices in 50 countries. A best-selling author of 15 highly acclaimed business books ­ including four international best-sellers, Brad has taught nearly a half-million people worldwide how to create business, real estate and financial success. He currently resides in Las Vegas with his wife, Lauren, and two children.
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7 Responses to Franchising Your Business …

  1. Padraig says:

    so what are the best franchise’s to purchase ?

  2. bradsugars says:

    Padraig, the best franchise is different for every person, take for example my company ActionCOACH, for some it’s perfect for others not suited at all … doo your homework and work out what suits you as well as what company you want to join. Brad Sugars

  3. Michael Kiick says:

    Three critical factors in what makes a quality franchise company and how to measure the concept.

    1. Has the Franchisor validated(is there a National or International want or need) the industry they are entering.
    2. Have they created a working model/prototype that can sustain and be profitable for all.
    3. Can they duplicate it so others can follow it to achieve the goals they desire.

    In franchising, it has to work for three parties to be successful.
    1. The Franchisor
    2. The Franchisee
    3. The Client/Customer

  4. David "Dutch" Holland says:

    I joined ActionCOACH for the following reasons;

    1. Great Business model with equally good margins and leverage.
    2. The caliber of the People in the organization.
    3. Support and Training are all World Class.
    4. The ability to deliver positive results to Clients

    I think buying a Franchise, one has to recognize that there has to be a “fit” between the Franchisee, Franchisor and the Product or Service being delivered – only if all three are aligned will the model work.

  5. Andrew B. Hartono says:

    I’m developing my family business so that i can franchise it.
    After join ActionCoach you’ll understand that the only reason you build a business is to sell it.
    Build your business and sell it, your highest profit is usually when you sell your business :D

    Thank you ActionCoach,
    Andrew B. Hartono,
    (ActionCoach Client)

  6. Themi Stergianos says:

    I am a recent Action Coach Franchise Owner

    I have bought and sold 7 franchises in the past

    If you want to build an international franchise – always look if you can check the following check boxes – build your Group with the following in mind

    My 7 learnings as a successful franchisee (and in order of merit)

    1. Buy the top franchise model in the industry ie if Pizza franchise – buy top franchise in the country (3 -5 years)
    2. If passionate founders are present – big YES
    3. Strict CODE OF CONDUCT and HIGH OPERATIONAL STANDARDS
    4. Consistency throughout group
    5. Are more than the 20% making money (real good money) – otherwise its an average franchise
    6. Buy in before the big growth is realised – ie see the potential for the group and buy in before everyone wants in
    7. Is the franchisor operationally focused or customer focused? If operationally focused – GET OUT!

    Build a franchise with the above in mind and you will have a winner

    Themi Stergianos
    Action Coach Cape Town (SOUTH AFRICA)

  7. Elyse Glathar says:

    Business coaching helps owners of small and medium sized businesses with their sales, marketing, management, team building and so much more. Most importantly, just like a sporting coach, your Business Coach will make you focus on the game.:

    Ciao for now
    <http://www.caramoantourpackage.com

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