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Considering growth? Consider franchising

In mid-February, Patrick Burge – director at Smorgasbord and Lime Licensing Group – was in the spotlight.

With a career spanning business mentoring and specifically start-up capital, Patrick is uniquely qualified to advise new and established franchisors on strategy and funding.

If your business is looking to expand and grow, it is worth considering a franchise model. But firstly, what exactly is growth? It’s increasing...

  • Turnover and net profit

  • Balance sheet and long term company value

  • Geographic reach

  • Number of people delivering the product or service

There are many types of growth you might look at and some are listed below, but for many businesses, franchising should probably be one to consider:

  • Organic

  • Acquisition 

  • Agents

  • Distributions 

  • Franchising 

But we understand that it’s difficult knowing where to start, and that’s why we always advise starting at the end! If you are aware of your end goal, you can start to plot your course:

  • Strategy

  • Cash

  • People

  • Execution

  • Timing

 

So why franchise?

  • Use other people’s money to grow 

  • Use other people to grow

  • Follow a collaborative path

  • Support and coach rather than control and instruct

  • Develop a brand and follow the process

  • Understand the difference between percentage and pound 

 

Discover new revenue streams

  • Franchise sales  

  • Monthly fees  

  • Royalties 

  • Supply chain rebates 

  • Marketing levies  

  • Innovation 

  • Renewals 

  • Resales 

  • Master franchise appointments 

 

Innovations from within 

Your business can grow rapidly by using the power of collaboration.

These innovations were suggested by franchisees, not the franchisor:

  • The Big Mac

  • The Fillet-O-Fish

  • The Egg McMuffin

 

The two most important things for the next 10 years

  • Legals 

  • Brand protection 

You are likely to be selling a lower overhead, leaner company and funding the appetite from the market. The benefits of a franchise include a multi-location business with a 30% growth potential, and customer contracts that span five to 10 years. 

 

What are Lime Licensing Group looking for?

  • Private companies that see an opportunity to grow

  • Small board or owner managed

  • Sector agnostic

  • Ambitions to do business in new areas

  • Blue collar or white collar – product or service

  • And the BIG ONE – businesses who are prepared to consider relinquishing absolute control in order to grow

 

If you would like more information on Lime Licensing Group or advice about the information above, contact Patrick Burge on 07977 984001 or drop him an email.

 

 

 




1802/2021

Patrick Burge – Smorgasbord and Lime Licensing Group