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Part Time Franchising

Part Time Franchising. John Newton. Who am I?. As a Franchisor of part time and mobile businesses for over 10 years I have experienced first hand the successes and failures of franchisees in this sector.

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Part Time Franchising

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  1. Part Time Franchising John Newton

  2. Who am I? • As a Franchisor of part time and mobile businesses for over 10 years I have experienced first hand the successes and failures of franchisees in this sector. • I agree with the reasons why part time can be successful and the grounds for success previously discussed, however I would like to draw your attention to my first hand experiences at some reasons for failure.

  3. The part time sector • A part time franchise is usually within the service sector. • A part time franchise is usually mobile. • A part time franchise is usually operated out of a vehicle or home.

  4. Hands-on • Part time franchisees work hands-on in the business and usually have minimal staff if any. • Part time franchises usually see themselves as self-employed. • Part time franchisees may work as an employee in another job as a supplement to a full time household wage.

  5. Smaller Sales • Part time franchises usually mean smaller sales turnover which results in smaller revenues streams for corporate head office and for the franchise system. • As a Franchisor will your franchisees be happy with their smaller NETT turnover?

  6. Part Time royalty BUT Full Time service • If you’re a Franchisor can you afford a smaller income stream. • Franchisees expect full time service from their support office even though they are parting with a just a part time royalty. • As a Franchisor can you afford to provide this support in your group office?

  7. Less Commitment • Part time franchisees have a smaller initial outlay hence there is less commitment to the business if their circumstances change. • Part time franchises mean they only commit part time to their business success for the future. • As a franchisor do you have the infrastructure to manage all these mixed, changing circumstances?

  8. Time poor • Part time franchisees tend to have less time to work on their business as they’re working in the business everyday. • Part time franchises have an active income stream. Therefore there will never be an opportunity to receive a passive income. • As a Franchisor will you have the tools or the ability to create fool proof sales campaigns?

  9. LAMP – Personal Success • A franchisees success will be mainly down to their attitude and to their personal investment of time. • LAMP and Referrals will play a big part in their success as they do not have store locations like full time franchise systems. • A person in a sign written vehicle becomes their key advertising technique. • As franchisor do you have a killer LAMP program or a team that can manage and engage franchisees.

  10. For you to consider - Franchisor? • You’re going to have more franchisees exit then the full time systems and your going to have to be able to continually motivate franchisees to run their business over all their changes in life. • As a franchisor you are going to be more hand-son running the issues.

  11. For you to consider - Franchisee? • If you’re a franchisee you need to want to be a hands-on franchisee. You’re going to be busier then usual as your probably running this business to compliment your household income. You’re going to be stretched for time a lot more and you ability to profit will be more based on your input to LAMP or referrals then full time franchisees. • Are you able to work autonomously in your business?

  12. Are you ready for part time? • As a Franchisor will your franchisees be happy with their smaller NETT turnover? • As a Franchisor can you afford to provide full time support in your group office but receive a part time royalty? • As a Franchisor do you have the infrastructure to manage all the personal, changing circumstances? • As a Franchisor will you have the tools or the ability to create fool proof sales campaigns? • As Franchisor do you have a killer LAMP program or a team that can manage and engage franchisees. • As a Franchisor you are going to be more hand-son running the issues. • As a Franchisee are you able to work autonomously in your business?

  13. But I love part time! • As a positive, a franchisee usually has no staff, no shop rent, no 7 day a week trading and their success/failure has less exposure to their personal assets. • Even with all the above complications, I have still launched a new part time franchise system aimed at woman only. I have learnt a lot from the current brand and going to implement new initiatives in the new brand early on.

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