Businesses with small gross profit margins usually make poor candidates. There have to be sufficient margins in the business, in terms of the money and time invested, to make it worthwhile for both franchisor and franchisee. A good rule of thumb would be to add an additional 15% of costs to your business and assess whether it would remain profitable.
Starting a franchise
Are you interested in franchising your business?
Franchising is a popular and successful way for people to start their own business. If you have a business idea that you believe has franchising potential, we could help you realise it. We regularly run seminars for businesses thinking about franchising and can provide useful guidance on what to do next.
When you franchise your business, you, as franchisor, grant a licence to your franchisees to operate a business under your name. You also give them a system to market your products or services for a specified period, and often in a specified geographical area.