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How long do you have to be trading before you franchise your business?

July 29, 2008

jonnyjpa asked:


I have an idea for a business start-up, however it seems to me it would work most effectively as a franchise. It would require work being done in every part of the country which is more than I could handle myself.

Would I be able to franchise my business as a start-up, if I was providing a system to franchisees that they would most likely to be unable to replicate themselves?

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Comments

4 Responses to “How long do you have to be trading before you franchise your business?”

  1. Heinz M on July 30th, 2008 2:55 pm

    It’s not time dependent, but rather when you can show a proper ROI. ~

  2. Jean-Luc on August 2nd, 2008 10:49 pm

    Think of it like this - would you buy into a completely untried and untested business??

    Suggest you get at least a years trading under your belt before even thinking about this… what looks good on paper very often doesn’t work in the real world.

    Also, until you’ve done it yourself, how would you provide support and assistance to your franchisee’s?

  3. john_extraincome on August 2nd, 2008 11:24 pm

    This certainly is not the time. Start small, run the business for about 2 years and see how you get on with it. If you are doing something unique I would get a patent as soon as possible.
    Show some good figures on your books and then think about franchising it. You cannot franchise just an idea, how do you know it will work. Best of luck though. Never give up on your dreams.

  4. KEWLBLOKE on August 4th, 2008 4:54 pm

    You would not be able to “Franchise” from day one, as it will be impossible to show people the merits of your business. Franchises can cost money, so any entrants will need to know that the business works.
    That does not mean that there is no way that you can involve others in the spread of your idea, and join the business. You will need a solid business plan, and good marketing to “network” the business. If the business model that you are thinking of cannot be “replicated” as you say, what possible growth can come via franchise anyway? If yoiu are worried about others who join the business could steal the idea, you would need to ensure that the products is either patented or the plan is copywritten.