While enjoying the success of your business, in the back of your mind you’re always probably thinking of the next step. Chances are franchising has crossed your mind as a way to step up your business growth. Franchising is a wonderful way to grow a successful business, but you’ll want to make sure it’s both the right fit for you and your company. Here are some things to consider before diving into the world of franchising.
Financial Performance
A strong financial performance or history is needed for many reasons before deciding to franchise. When you become a franchisor you’ll be asking entrepreneurs to invest in your business model. Having a healthy profit track record to show them will be beneficial to both of you. The franchisee will need to be able to earn enough money to cover their expenses plus pay you royalties and other fees. The upfront investment is also required when it comes to franchising. Some expenses you should be prepared for include fees for legal purposes, professional advice, property protection, advertising, marketing, and more.
Business Models
The franchisee and their employees may be new to the business world and will need to be taught all about your company. This is where business models come into play. Your business should be rigorously standardized with operating procedures and methods that can easily be replicated and taught to the entrepreneurs. You must have an operations manual, code of conduct, forms and any other tools that will enable them to deliver your brand experience in a different location and achieve financial success. Consistent and replicable business models are key when it comes to growing your success.
Personality Fit
Personality and work style also play an important role in the world of franchising. As a franchisor, you are the chief brand ambassador. You are the brand. Your time will shift to managing your franchise system instead of the one or two home-grown locations you have built. You may be on the phone or Zoom calls coaching and trouble-shooting with your franchisees while the manager you have hired is worrying about the day-to-day operations of your corporate units. If your passion is being with your customers every day just know you’ll have to take a bit of a back seat to be there for your entrepreneurs.
Team Members
Having the right advisors on your side can make a huge difference before jumping into franchising. This group of experts will guide you when it comes to looking into franchising options, legal requirements, expenses, operational requirements and more. Your team will usually include a lawyer, accountant, banker, and consultant. Ideally, they will all have expertise in franchising. With the proper team, there’s nowhere to go but up.
Now that you feel confident that you have what it takes to become a franchisor, FranchiseYourBusiness.com has all the tools to help you get started and continue your success. Visit us at 640 Freedom Business Center Drive, Suite 131, in King of Prussia, or call our expert team today at 833-372-6249 to request a free consultation!