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How long must I be trading before I can franchise my business?
There is no minimum period during which you must have traded before you can franchise your business. That having been said, franchising is not about licensing an idea. You have to have a business that you can prove actually works and you must also be in a position to prove that it can work when you, the franchisor, do not operate the business. It is normally considered essential in franchising that a franchisor not only has a viable business that realistically should have been operated for a few years, but also should have operated what are called ‘pilot franchises’, which demonstrate that third parties can also operate viable and successful businesses from the franchisor’s system. Ideally, there needs to be at least two pilot franchises and they should have been operating for two years. In practice, many franchisors do cut corners on the above requirements, but they, and particularly their franchisees, would be taking a risk. Further, of course, in the highly competitive market for good franchisee candidates new franchisors that have not operated a successful business and pilot tested will find it increasingly difficult to recruit franchisees.
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Exciting Franchise Opportunities
Companies to Consider
To be discussed
The Spitting Pig Co
40% net profit on a turnover of £110,000
Available upon request
The Christmas Decorators
£120,000 net profit
£75,000 to £100,000
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