Franchising as a business model

Franchising as a business model

Where's my first million?

The franchise business model and who really benefits


It's alright for you, I often hear. You can go on about franchising as a business model all you like.

You've already built a multi-million-pound business – and it's a franchise, no less.

But what about the franchisees on the ground? What do they think about it? Don't see many of them becoming millionaires, do you?

Actually, we do. At time of writing, we have franchisees who own and operate seven-figure businesses under the Fantastic Services brand.

And I don't see any reason why we won't see a whole lot more of them in future. In fact, we're aiming to create a thousand of them in the next five years

That wouldn't be possible if we didn't give our franchisees the support they need along the way. It's a far cry from the usual criticism of the franchise network – that, as a franchise, you do work that other people stand to benefit from.

A story of supporter and supported

The franchising system can get a bad rap. And there are franchises out there that may deserve it.

But, in a fair franchise system, everyone rises to the top together. The franchisor-franchisee relationship isn't one of exploiter and exploited.

Done right, it's one of supporter and supported. With the franchisor providing the training, instruction in industry-leading processes – and hopefully well-known brand, highly effective marketing, and more – needed to support the franchisee as they grow.

Yes, the franchisee pays a franchise fee to the franchisor. But what they get out of it is everything they need to run a successful business.

They benefit from all the hard work the franchisor has already put in developing, iterating on, and refining how the business works. They also benefit from the efforts of the other franchisees in the network, who are constantly working to deliver high-quality services, growing the reputation of the company – and who benefit from the new franchisee's work in turn.

Need to know? Go and ask them

Think I'm just blowing smoke? I invite you to go and ask our franchisees – or those of any franchise network set up with a 360-degree view of support, success and happiness – what they think of the system.

Franchisees aren't forbidden from talking about the system they're a part of. In fact, if you see a system where they are, you better run fast.

But I and, I imagine, most franchisors want their franchisees to be out there evangelising about their network. I want you to go and learn from them why this franchise idea is great for them. Because it might be great for you too.

Who is really benefiting?

The biggest objection to franchising as a business model is usually that you are doing work that someone else stands to profit from.

Okay, let's compare franchising to other models that purport to do the same sort of thing – help you grow, or at least advertise, your business. Something like a platform or marketplace.

Has the creator of the marketplace you just joined coded it up out of the goodness of their own heart?

No, they most certainly did not. And what are they giving you in return for your hard work and effort (and the fee you're paying to list your business there)?

Not a whole lot. Other than what essentially amounts to some marketing. Your work is actively benefiting the platform provider or marketplace. In return, you get little.

Sure, in a franchise, your work may benefit your franchisor and the other franchisees on the network. But in return, you are getting a whole lot more. In the Fantastic Services network and other trusted ones, that should include everything you need to make a success out of your new business.

Where's my first million?

For those worried that they have some sort of earnings ceiling in place as a franchisee or that they're putting in work that someone else is benefiting from, I refer you back to the first of our millionaire franchisees.

They aren't isolated cases. They're just the first of what we plan to be many.

And I remind you that, while your work as a franchisee will certainly benefit your franchisor and the other franchisees in your network. At the same time, their hard work is also benefiting you.



What do you think? Is there a business model that helps new business owners more than a franchise?

Comment below and let's get the conversation started.



Hope Conway-Gebbie

Public Affairs Officer | Political Communication Graduate

3 年

Thanks for sharing this

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Jonathan Elder

Salesforce AppExchange Product Owner

3 年

Very interesting article - thanks Rune Sovndahl

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Josh Alballero

Scaling Finance Services for Businesses

3 年

Thanks for letting us know, very useful Rune!

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