Your business is doing well and you think about franchising. It’s great that you are considering franchising! Franchises are a fantastic way to grow your brand without opening new locations. The process isn’t easy. This show will not be a walk in the park. Join us for a deep dive into “How to Franchise a Business” and expand your horizons.
You should first ensure your business is franchisor-ready. If your business is profitable, has a strong branding identity and can easily be duplicated, it’s franchise ready. You can think of this as baking cookies. Without a recipe that is foolproof, each batch will have different results. This is where consistency comes into play.
Write a sound franchise business model. This plan should cover everything from the market to financial forecasts. Imagine drawing a Treasure Map for the potential franchisees.
Next, let’s get to some legal stuff – franchise disclosure documents. These documents are mandated by law. They contain vital information about your company’s model, costs, obligations and much more. A franchise attorney is a good choice because you won’t be surprised by any surprises.
Also, marketing materials will be important. It’s important to have brochures as well as websites and campaigns on social media. As if you were going on a very first date, dress up your best.
Not to be forgotten are training programs. They will be able to use these programs as a guide to running their franchises successfully. Imagine throwing a person into the deep-end without taking swimming lessons.
It’s also important to have an operation manual, which covers every aspect of operating the franchise – from staffing and inventory management. This book is your Bible, and it will help you to get everyone on the right page.
You can begin your search for franchisees once you have everything in place. They should share similar values and goals as yourself. The same as finding roommates: you need people who are not only willing to pay their rent but respect your rules.
Remember to continue your support. Franchisees may still turn to you for advice long after their store has been opened. It is important to keep in touch with your franchisees regularly.
Lastly–money matters! Be sure to determine how much initial fees will be and what royalties you plan on charging. Don’t be unfair, but keep in mind that you need to continue earning money with each location.
There you have it, an accelerated tour of the franchising process! This is not an easy process, but it can also be very rewarding if you plan and execute well.