Are You Ready to Franchise Your Laundry Business?

1. How is your business performance?

You can evaluate your business performance using these criteria:

• Up to three years of successful operation.

• An operating system that can be turned into an operation manual which will serve as a blueprint for new franchisees in the day-to-day operations.

• A strong unit level economics – this means you are making more money per customer than it costs you to get one.

• Competitive advantage that differentiates your brand from competitors.

2. Does your business have a strong standing in the industry?

The laundry industry is very competitive. Hence, you must ensure that your business has what it takes to withstand the competition before starting a franchise. Ideally, your business must perform better than your competition and at least meet industry benchmarks. Franchising a business involves legal fees, development costs, marketing costs and other sales-related expenses. You must be well-capitalised to cover the start-up and development expenses of franchising. You will need a good team with the relevant experience, skills and expertise to assist you with franchise sales, franchisee training, daily operations and more.

3. What is your long-term goal and the right timing?

Building a successful franchise takes years. You need a five-year strategy and commit to long-term growth. Many franchisors get discouraged in the first two years because they did not have the right mindset from the start. Timing is also crucial. Franchising too early, when your business does not have the right system or is not profitable enough or your internal team is not ready, is likely to lead to failure. On the flip side, if you wait for everything to be perfect, you might just miss the right market conditions for your franchise to thrive. You must be willing to learn and grow along the journey and not expect everything to work out perfectly the first time around.