Home		The Franchise Institute Report : Volume 2

Volume 2, December 2004

THE FRANCHISE REPORT

How will I know when my business is ready to franchise?

This is one of the most commonly asked questions. Often the business is in good shape, that is

• it is profitable
• well established
• has a good customer base
• has potential for expansion
• has a recognizable or distinct name and logo
• it is able to be replicated.

What’s “not ready” is the business owner. As Clive Rogers, from the Car Kit Company says of his decision to franchise his business

“You’re never ready, there’s always something else that need to be done first, knew equipment to purchase, knew business to secure, so its just a matter of making a decision and committing to that decision. Once I had made the decision to franchise I felt so much less stressed about the whole thing.

The decision to franchise my business made me step out of my day-to-day role of working in the business and take an more holistic longer term view of where my business was headed I saw things in a very different light and it was refreshing”

Is your business name and logo or ‘Intellectual Property’ Protected? – No matter how great your business is and how many happy customers you have, you run the risk of loosing it all if you haven’t protected your intellectual property.

The registration of a business name only confers very limited protection. To really protect your name and logo you need to register them as a trademark

If you’re thinking of franchising your business this step is essential. The right to use the franchisor’s name and logos is a core part of most franchised systems. So protecting the name is of utmost importance not only to the franchisor but also to other franchisees in the system.

But even if you’re not planning to franchise registering your name and logo as a trademark is good business practice.

Registration can be sought in one or more of a number of classes defined by product or industry. The protection will be given in the class in which you apply for. There are about 40 different classes.

It’s not an expensive process with costs starting at around $150 per application per class as well as an additional filing fee of $300 per class upon acceptance of the application for registration of the mark. Most businesses only need to register their name and or mark in 1-2 classes.

You can do the process yourself by going to www.IPAustralia.com.au or engage the services of a lawyer to do it on your behalf

FEAR – A four-letter word

What is fear and why does it hold us back? To most fear in business is something we don’t talk about explicitly but its pervasive across all areas of what we do. Fear manifests itself in thoughts such as “what if it doesn’t work” “what will people think”. Of course its normal to feel some anxiety (and excitement) when we try something knew, but on the whole we are much more prone to focusing on what if something doesn’t work rather thank thinking about what our business would be like if IT DID WORK.

So here is a new definition of FEAR:
“False Expectations that Appear Real".

What’s new?…

Mentoring Program

In July 2005 the Franchise Institute added a mentoring component to the Franchise For Success Program. Based on feedback from our customers we have established the mentoring sessions so as to be able to “hold the hands” of our customers as they proceed through the franchising process. While the software is self-paced and interactive allowing customized franchise documents to be developed, the mentoring sessions add that extra piece of mind. So each Franchise For Success Program now includes 4 on site mentoring sessions. The Institute also offers an extended mentoring program for companies wanting to go beyond the 4 on site meetings.

Recommended Reading

If you’re thinking of franchising your business or just expanding it the traditional way then this is a MUST read

In The E–Myth, Michael Gerber dispels the myths surrounding starting your own business and shows how commonplace assumptions can get in the way of running a business. He walks you through the steps in the life of a business from entrepreneurial infancy, through adolescent growing pains, to the mature entrepreneurial perspective, the guiding light of all businesses that succeed. He then shows how to apply the lessons of franchising to any business — whether or not it is a franchise. Finally, Gerber draws the vital, often overlooked distinction between working on your business and working in. your business. After you have read The E–Myth Revisited, you will truly be able to grow your business in a predictable and productive way.