Once You Have a Successful Business,
It Is Time To Create A Franchise Chain
Tony Fitzpatrick will be in Bulgaria on 26th and 27t h of November to take part in the conference “Franchising Business”, part of the Franchising Expo 2010 in the National Palace of Culture.
Which is the most difficult part when someone decides to develop and start his own franchise?
Understanding that franchising your business is not easy and it is not cheap. Realize that you will be in franchising for the long haul so prepare for it. Building your new business will take time and patience. You’ll need a proper plan, proper management, and proper funding. Above all else, you’ll need to offer leadership, motivation and support.
What is the profile of the companies that chose to franchise their business?
They are businesses that have operated successfully (and profitably) for at least one year and preferably two, can produce audited accounts, and can offer a franchise that is good value and can make a return on investment in the short to medium term and a good living for its owner.
Which business is and which is not suitable for franchising?
Any business that is profitable with a proven concept and a system that can be replicated can be franchised. You do not need an established brand but you do need a market for your product or service.
What are your observations about the current trends in the franchising business worldwide?
Franchising is flourishing across the world. In a difficult economic climate, more and more people are attracted to franchising as a way of running their own business and taking control of their future by investing in systems that are already proven to be successful. Franchises in the food and drink industry will continue to be very popular, but because money is hard to find there will be a surge of interest in service businesses that can be run from home with low overheads.
Which is the most interesting business which you consulted for franchising?
Difficult to single out the most interesting - everyone who goes into franchising is an entrepreneur with ideas, drive, and determination, which makes all of them interesting!
How does the question “Franchisor or franchisee” sound to you? Is there a right answer?
A Franchisor is someone who has successfully tried and tested a product or service in a niche market and can offer a business that is profitable and can easily be replicated. He can provide a tried and tested system to follow, a corporate image, know-how, experience, training, and ongoing support in return for a percentage of a franchisee’s earnings.
A Franchisee is someone who wants to be their own boss but does not have the ideas, desire, or skills to set up their business, or who simply believes that a business selling a proven product or service is a sensible option for their circumstances and/or character.
Could you please tell us more about your business?
I have worked as a franchise consultant across Europe since 1999 and would be regarded as an expert in the industry. I provide a complete consultancy service to both established and start up franchisors, taking clients through the entire process. Apart from setting up a business as a franchise, I also provide ongoing management of the project and actively negotiate with potential franchisees to make the all-important sales.
What is your message to them to the participants in the Franchising Expo Bulgaria 2010?
Go for it! You have established a successful business with enormous potential. The rewards are great—the satisfaction of having achieved a goal that few others have realized, recognition in your community, financial security, and the psychological benefit that comes from working as mentors to other entrepreneurs.
Tony Fitzpatrick is a managing partner in FranchiseYourBusiness.ie, which offers consultancy service for start up and established franchisors, he is a member of the Executive Committee of the Irish Franchise Association and also serves on the Membership Committee. He speaks at seminars for potential franchisors and franchisees and writes articles on the industry for newspapers and magazines.