In recent years choosing to franchise a business has proven to be a route that leads to rapid growth. However, it’s important to note that becoming a franchisor is not guaranteed to be a path to success.
Suppose you have dreamed of seeing your business become a household name with a network of respected franchises worldwide. In that case, you might be interested to learn how to franchise a business. Our team at FranchiseYourBusiness.com has put together this brief guide to give you an idea of the process involved with franchising your business.
Here Are The Steps Detailing How To Franchise Your Business
Since becoming a franchise owner can be a complex endeavor, we want to make the process as simple as possible at FranchiseYourBusiness.com. Below we have briefly discussed a few of the most important steps to be taken if you want to successfully become a franchisor.
Determine If Your Business Is A Suitable Match For Franchising
Firstly, you need to establish if your business is suitable for franchising because, unfortunately, not every company is ready to become a franchise. Below you will find a few of the questions you should ask if you want to become a franchisor:
- Is my company currently profitable, and is it doing well?
- Am I capable of marketing and selling my franchise opportunities?
- Am I currently able to afford the costs involved with franchising and expansion?
- Will I be able to successfully clone my business model?
- Am I an individual who is comfortable becoming a supporter and teacher in the franchise industry?
Although these are important questions, you don’t need to answer ”yes” to each of them to become a franchisor. Yet, you will need to identify any weaknesses to move forward with your franchising dreams.
Take Steps To Protect Your Intellectual Property Rights
An important part of franchising your business is protecting your wealth of intellectual property. When you franchise your business, you often need to hand over intellectual property to others, which could lead to your business becoming vulnerable. If you want your business to be successful and benefit from the intellectual property like trade secrets, you need to ensure you have protected it properly by consulting a legal advisor.
Create A Franchise Agreement
After you have carefully followed steps one and two, you can move forward and create a franchise agreement. This agreement will bind you and your franchisees to specific expectations, influencing how your franchise functions, for a specific length of time.
Even though a franchise doesn’t have to adhere to a particular format, it’s important that you remember to include the most important elements. Some of these could include;
- Your upfront and recurring franchise fees.
- The opening timeline for your franchise.
- The special conditions applicable for terminating a franchise agreement.
- The various terms and conditions for the renewal of a franchise agreement.
- The minimum sales requirements.
- The inventory, equipment, and supply specifications.
- The franchise territory protections.
Establish Franchise Standard Operating Procedures
When becoming a franchisor, one of the most crucial things you need to establish is your standard operating procedures (SOPs). Think of your franchises as clones of your original business unit, depending on the type of business you own. The SOP is the step-by-step roadmap for the day-to-day activities of running your franchise.
Your SOPs need to be detailed and often include:
- Branding and marketing guidelines
- Staffing procedures such as hiring and firing protocols, training requirements, and attire (if appropriate).
- Office operations, financial reporting, risk management.
- A list of approved supply vendors, and more.
Set Your Franchise Strategies to Achieve Goals
If you want your franchises to be successful, you need to set franchise strategies to achieve goals. When setting franchise goals, you need to remember to be realistic, and you need to ensure your strategies are plausible too.
Additionally, when choosing strategies for your business, it’s important to carefully examine what would work for your franchise based on its needs and goals. Some of the things you should consider when formulating your franchise strategies include:
- Create a strategic marketing plan that will grab people’s attention.
- Consider offering people a referral bonus when they send you qualified franchise applications or working with a franchise broker who can also present qualified candidates.
- Hire salespeople and consultants who are familiar with the type of business you want to franchise and who care about your ambitions and goals.
These are only a few of the recommendations. If you want to know more about the strategies you can develop, you need to speak with a professional in this industry.
Franchising your business might seem daunting and incredibly challenging, but it doesn’t have to be. The experts at FranchiseYourBusiness.com can teach you how to franchise your company successfully without unnecessary risk. We are committed to helping businesses turn their franchise dreams into a reality. Get in touch with us today to learn more about how we can help you.