Franchise Innovations: Launch Your Next Business

By Business, Business Model, Customers, Innovation, Interactive, Leadership, Marketing, Strategy

Innovate Vancouver Franchise Opportunities

 

Franchise businesses are on the rise as entrepreneurs discover new ways to scale their business. Having a model readily available for immediate launch allows you to do what you do best while receiving the credibility and support of a reputable brand.

Information regarding Innovate Vancouver Franchise packages can be viewed on the “Franchise Opportunities” page!

Download the Brochure:    Download

FRANCHISE DEFINITION

The Government of Canada (2017) defines franchising as follows:

There are many resources available online to research and learn more about the responsibilities of management to include:

    • Canada Franchise Association
    • BC Franchise Act
    • BC Franchise Legislation, &
    • Professional Organizations (legal, strategic, etc.)

FRANCHISE ADVANTAGES & DISADVANTAGES

 

The following list of advantages & disadvantages of being an entrepreneur and operating a franchise has been developed by the Government of Canada (2017):

AdvantagesDisadvantages
  • You don’t have to come up with an idea for a new business.
  • You get help with business start-up (equipment, suppliers, training).
  • Your business benefits from existing brand name recognition.
  • An established supply chain and customers demographics are already known.
  • Buying into a successful business can be profitable.
  • Putting your ideas to work (2018).
  • Deciding what type of business you want.
  • Making your own decisions for the business.
  • Deciding how/where to deliver and market your products/ services.
  • Have the potential to work more.
  • Have the freedom to work less.
  • Be involved in the total operation of your business.
  • The businesses are all run the same way, so you have less flexibility to run the business the way you would like.
  • Generally, the more successful the business is, the more expensive it is to buy.
  • There are ongoing costs, such as royalties and advertising.
  • Some businesses may not provide a lot of support, such as training or mentoring.
  • The location of the business is at the discretion of the franchisor.

As a result, it’s important to make sure the model is an appropriate fit for your team’s skill-set, experience, and goals.

STARTING A NEW BUSINESS CHECKLIST

Innovate Vancouver - Franchise Models

The Government of Canada (2018) offers a short checklist for starting a new business. A link to their site is available at the end of the page.

Business Startup - Checklist
The checklist sections include the following:

1. Planning your business: Marketing, Registration, Naming, Location, Taxes, and Legislation.
2. Organizing your finances: Writing your business plan, Exploring grant opportunities, Managing your finances, and Benchmarking.
3. Hiring & managing employees
4. Workplace health & safety

A list of more resources is provided at the end of this page.

ELEMENTS OF A GENERIC FRANCHISE AGREEMENT

The following template outlines the elements of a generic franchise agreement. Some elements may not be relevant, depending on the business model and the resources provided by the franchisor. Feel free to use this template when exploring opportunities and developing the agreement.

ESTABLISHING VALUE

Business Model Crossover

Areas relevant to the Business and technology consulting (services, computers, marketing, etc.) franchise model are highlighted in the ranked list below. Franchise opportunities exist across all industries. Watts (2018) identified the following 21 most popular business models:

IndustriesIndustries
1. Food
2. Home-Based 
3. Coffee
4. Business Opportunities
5. Children’s
6. Restaurant
7. Retail
8. Health & Beauty
9. Cleaning
10. Computer & Internet		11. Travel
12. Entertainment
13. Accounting and Financial
14. Business Services
15. Home Services
16. Courier
17. Training 
18. Consultant & Business
19. Advertising & Marketing
20. Printer, Copying and Sign
21. Tax 

The value and cost of starting a new business, although interdependent, are often driven by different factors:

ValueCosts
The value of purchasing a Franchise involves both qualitative and quantitative measures including:

  • Increased Scale (reach, performance, & efficiency)
  • Faster to Market (productivity, focus, & efficiency)
  • Improved Visibility & Brand Recognition (quality, message, and value proposition)
Whereas the cost of purchasing a Franchise depends on:

  • Support/ Coaching Provided
  • Training Provided
  • Business Model/ Industry
  • Assets Provided (supplies, forms, technologies, etc.)
  • and can be influenced by a startup Fee/Royalty mix (with higher royalties potentially being associated with lower fees upfront, and vice versa).

The value offered through the purchase of a pre-built business model is almost unlimited and yet it remains a personal decision.

Startup Costs
 Do your research as no two models are the same. One business consulting model requires $36,500 as an initial fee where another only requires $15,000.

The Innovate Vancouver Franchise

Whether to pursue a startup business will depend on the individual’s area of interest, expertise, resources, breadth of experience, and ability to invest the time and effort necessary to ensure the business is successful.

An open source approach to business model development supports additional benefits including scalability, efficiency, and relevance within an ever-changing environment.
Investopedia
 “It’s often said that more than half of new businesses fail during the first year. According to the Small Business Association (SBA), this isn’t necessarily true. The SBA states that only 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10.”

Entrepreneur Magazine (2017)
  “It’s often said that more than half of new businesses fail during the first year. According to the Small Business Association (SBA), this isn’t necessarily true. The SBA states that only 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10.” Beginning with a strong foundation can make a significant difference. The type of foundation needed will depend on the entrepreneur’s skill set, goals, and technical resources.

Information regarding Innovate Vancouver Franchise packages can be viewed on the “Franchise Opportunities” page!
Franchise Packages
Innovate Vancouver Franchise Operations Manual: An Open Source Approach to Scaling Your Business

The franchise model can help build that foundation. License a package through Innovate Vancouver. Benefit from the expertise of our business model, business, and technology experience to start your business! Several packages are available beginning at $5,000 initial fees to $15,000 for a full package. Check out the Innovate Vancouver ‘Franchise Opportunities’ page for more details!

Download the Brochure:  Download

 

Travis Barker, MPA GCPM

Innovate Vancouver

Consulting@innovatevancouver.org

Contact Form

Monetizing Your Franchise Model – Article
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Resources:

Adler, J., Prenevost, G., & Little, L. (2017, March 09). The Ultimate Checklist for Franchise Buyers. Retrieved from https://franchisecanada.cfa.ca/the-ultimate-checklist-for-franchise-buyers/

Government of Canada. (2017, September 12). Franchising. Retrieved from https://canadabusiness.ca/starting/before-starting-your-business/buy-a-business-or-start-your-own/franchising/

Government of Canada. (2018, August 01). Why consider entrepreneurship? Retrieved from https://canadabusiness.ca/starting/before-starting-your-business/is-entrepreneurship-for-you/why-consider-entrepreneurship/

Watts, P. (2018, June 05). Which Franchise Industries Are the Most Popular. Retrieved from https://www.franchisedirectcanada.com/blog/which-franchise-industries-are-the-most-popular



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