Franchising a small online business..

[Lexual]

I'm a sole trader with an online business supplying various printed materials and products.

I don't own any equipment or premises, I have accounts with trade suppliers and just make a margin on each order. I can work just from my laptop.

I'm thinking to offer the business as a franchise to people so they use my website, I set them up with my suppliers, I manage the website, AdWords etc, they can also do their own marketing.

The idea is they pay an initial small fee for set-up and then just a monthly admin fee to cover the website and marketing costs.. I set them up with email, accounts with suppliers and everything they need to start right away. They would be sole traders so will manage their own accounts.

Has anyone done something similar, does this sound viable.. am I missing something major?

TIA.

[XJSJohn]

not an expert here but the issue i see is "online business", so your franchisee's would be in direct competition with you, and each other.

Shopfront franchise works because you can do teritories to reduce the competition.

[technodup]

Lexual said:

I'm thinking to offer the business as a franchise to people so they use my website, I set them up with my suppliers, I manage the website, AdWords etc, they can also do their own marketing.

So I pay you, then I pay to market my bit of the business and the customer goes to your website?

What's to stop you harvesting off the customers for yourself? Surely the benefit of a franchise is that once you've paid your dues the customers come to your business, not the main franchising bit?

Can't see how/why anyone would want to pay to effectively send punters to someone else's website, however well intentioned they might be.

Having said that I've seen some pretty rotten franchises 'opportunities', so maybe I'm wrong.

[Lexual]

The idea is I would completely stop selling myself, maybe take care of a handful of my long-term clients, but I would just be maintaining the marketing, website, supplier relations and looking after the franchisees.. I wouldn't be taking any commission from sales..

As has been pointed out, my biggest challenge would be how can I ensure that an enquiry goes to the right person who generated that enquiry...

[48k]

How do you plan to market a bunch of franchisees who are all directly competing with each other?

I don't see how this could possibly work.

[technodup]

It doesn't make sense to me. The new guy does some marketing, sends a customer to this central site, then you've got to send it back to him?

I'm not trying to be difficult but whats the benefit to the franchisee? I understand if you're Minuteman and they're setting up a shop with the brand etc. Or if you have some fancy software that does something special or unique. But if it's just speaking to a couple of trade printers..?

I do a bit of print alongside my normal business. No complicated stuff, couple of emails, white labelled to the punter, easy money. The only pain is the art. I intend doing a bit more this year but I never quite get around to it.

As a potential franchisee I just don't get it.