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CHAPTER 9 GROWING YOUR BUSINESS EMPIRE

rights to use your brand name and market your products/
services using your proven business model. The franchisee
will have to strictly follow your proven system of marketing,
operations, finance and management in order to replicate
your standard of success.

In return, the franchisee will pay you an upfront franchise fee
as well as a percentage of his sales revenue every year. You
also make money by selling the necessary products and
equipment your franchisees need to run their business.

Franchising is the strategy that McDonalds Corp used to
rapidly expand its operations all over the world. By giving
independent business owners the right to use the McDonalds
brand name and training them to use its proven business
system, McDonalds achieved the feat of opening 31,000
restaurants in 118 countries over the last fifty years. Today,
an average of one new McDonalds restaurant opens for
business everyday somewhere in the world. What’s more,
even though McDonalds does not have to fork out a cent to
open all these restaurants, it takes in US$22.78 billion in
franchise fees and product sales a year. Other examples of
successful franchises in the world include Ben & Jerry’s (Ice
Cream), Subway (Food), Kumon (Education), Planet Fitness
(Health), 7-Eleven (Convenience store), Action International
(Business Consulting) and Supercuts (hairdressing).

Can Your Business Be Franchised?

In order for your business to be franchised, a new business
owner must be able to replicate your business model and
achieve the same financial success that you have. Obviously,
for this to happen, your business must be able to work
automatically, in the hands of anybody who takes over. This

268 SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES