Should You Consider Franchising to Grow Your Business?

When I co-founded my first business, I knew nothing about franchising—it was just something that fast food places like McDonald’s did, wasn’t it?

Even after studying business strategy during my MBA, franchising wasn’t covered as an option for business growth. In fact, the focus was mostly on corporate strategy; very little attention was given to SMEs, even though that’s where most entrepreneurial opportunities lie.

So, should you consider franchising as a way to grow your business?

The short answer: maybe. Like most things in business, it depends.

When Franchising Makes Sense

In the early years of my first business, we grew quickly. Our focus was purely on maintaining the flow of enquiries and ensuring we had the right product to sell.

Then the 2008 banking crisis hit. We had to adjust—adding more complex products and expanding into new markets. Franchising wasn’t even on our radar. And by the time the market recovered, our business model had become too complex to franchise.

This raises a key question: when is the right time to franchise your business?

Ask yourself:

☑️Is your business consistently profitable with a healthy ROI?

☑️Do you have positive cash flow?

☑️Are your systems replicable and capable of ensuring consistent operations across multiple locations?

☑️Have you differentiated your brand from the competition?

☑️Do you have sufficient capital for setup costs?

☑️Do you have an established team to support the process?

☑️Franchising takes time, so your long-term goals and mindset are just as important as the financials.

Lessons from Being a Franchisee

Although I didn’t franchise my first business, I later became a franchisee twice.

After exiting my first business, my priorities changed as my daughter was starting school. I wanted something flexible that I could run from home.

With a background in travel, I first joined Travel Counsellors, and later, due to Covid, I set up an outsourcing business as a franchisee. They were very different; one with hundreds of franchisees, the other with just a handful and each had a very different model.

Choosing the right franchise is crucial. Franchising can be an excellent way to start in an industry you’re not familiar with, giving you:

☑️A proven business model

☑️Support systems

☑️Recognised branding

What to Look for in a Franchise

From my experience, here’s what matters most:

1. Cost vs. Return – Initial costs vary widely; the cheaper ones are often cheaper for a reason. Look at both upfront and ongoing costs.

2. Belief in the Product/Service – Money is important, but alignment with the business vision is what keeps you motivated through tough times.

3. Number of Existing Franchisees & Market Size – Assess local competition and potential demand.

4. Training, Support & Expertise – The support from your franchisor will determine your success, especially in the first year.

5. Marketing Assistance – National or regional advertising can accelerate growth.

Remember, as a franchisee, you’re buying into someone else’s business. If you have a very entrepreneurial mindset, with lots of ideas and a desire to innovate constantly, a franchise may not suit you as you will need to operate within strict operational and branding guidelines.

You’ll also be tied to the broader performance of the franchisor and external market factors that are out of your control.

Think Like a Franchisor

Even if you never franchise your business, thinking like a franchisor is invaluable.

Build your business in a way that it can be run by others exactly as you do. Doing this creates a scalable, saleable business that isn’t dependent on you.

Franchising isn’t right for every business, but the mindset and systems you develop by thinking like a franchisor will make your business stronger, more efficient, and ready for growth; whatever route you choose.

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