Martin Lo Surdo of Amplify Business introduces us to the fascinating world of franchising! In this episode, Martin walks us through the basics of the franchise business model and talk about the sorts of questions that both potential franchisors and franchisees might be thinking about.

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Episode Highlights:

* Getting into Franchising

* The Franchise Business Model

* 3 Reasons for becoming a franchisor

* To be a franchisor, your business must be

* 3 Tips for potential franchisors

* 4 Reasons for becoming a franchisee

* Limitations of franchising

* 2 Tips for potential franchisees

* Franchising in media

* How to contact Martin

Getting into Franchising

This friend of mine said, “I think I might have something for you.” He was working for a prominent franchisor at the time and a national marketing manager. He thought I was really well positioned to interview new franchisee applicants coming through, wanting to take on a franchise.

So my initial foray was interviewing people as a selection manager for people wanting to join into a franchise business.

– Martin Lo Surdo

 

The Franchise Business Model

There are many franchise businesses that sell franchises and the better businesses grant franchises. That is a real distinct difference.

Business buyers want to know what they're getting themselves into so what’s really important is actually presenting the facts of the business, presenting the systems.

If I look back at my career, one common thread is small business and my enjoyment in being involved in small business and the role that small business plays in the local community. I really enjoy what small businesses can do it really. They obviously start small but they don't envision to always be small.

The franchise business is a good way of getting people into business and fulfilling their career goals by business ownership.

– Martin Lo Surdo

Reasons for becoming a franchisor:

* Reach a wider audience - using franchising as a distribution model

* Have access to funding - where the franchisee acts like a commercial partner

* Change in interest - for the business owner who wants a change in his role in the business

To be a franchisor, your business must be:

* Profitable

* Able to be replicated

* Have well-established systems

 

Tips for potential franchisors:

* Get a good lawyer because there's a whole lot of legal compliance around franchising.

* Talk to an experienced franchise consultant to get some guidance and advice.

* Have your brand protection in place because failing to do so can have all so...