Many business owners look for ways to increase their audience. One popular way of doing so is to franchise their business. How is this done? The following information will show you start. You’ll also learn the five best tips to follow along the way. As you will see, it’s not as complicated as some may think.
How To Franchise Your Business
Franchising your business is easy. As The Franchise Maker explains, all you have to do is follow some simple steps:
- Create an entity for the parent company, which will offer franchises
- Register your trademark and logo
- Structure your franchise system, and create a Franchise Disclosure document package
- Give the package to an attorney so they can review it
- Get the proper documents and resources
It is recommended that you start out slow, and do so locally. After all, you don’t want to do everything “at full speed”, and invest a lot of money in a only to realize that it’s not working out. Heed the advice of the experts.
But, that’s only the beginning. As Entrepreneur shows us, there are several other tips to consider such as finding a concept, selecting a franchise, training everyone, controlling your operation, and making sure that your success is emulated in other locations.
Develop Your Concept
While some situations allow a person to do things “off-the-cuff”, you’ll wanted your franchises to follow the same plan you do – and that requires a very specific plan. Sharing it will help franchise owners understand what you want.
You should also make sure your concept stands out so that people come to you, and not a competitor. For example, CNBC showcased a company that “installs, cleans, and repairs car seats”, and the company is a success because of personal service that caters to “child-related franchises”.
Selecting a Franchise
That brings to mind the idea of selecting a franchise. The relationship between you and the franchisee is vital for success. It is long-term, and it will involve a lot of money changing hands. So, be consistent, and make sure you research every candidate. Don’t go into a deal blindly.
The franchiser also needs to be responsible. As The Wall Street Journal explains, he or she “should offer a well-known brand name, a track record of proven performance, and a good reputation.” You need to show that you can be trusted. After all, just as you are doing your research to pick out a good candidate, the people you speak to have also done their own homework to find the best fit for them.
Once you pick your franchisee, it is time to train them properly. For one thing, doing so will help him or her understand the daily operations process, develop the right skills, and have less questions.
In order to do that, as Entrepreneur explains, you need a good operations manual. It will show you how to run things.
You should also offer training at the main location for anyone who needs it. The owner’s manual is good. But, the training that franchisees receive should serve to answer any detailed questions they may have later. While the training should initially happen at the headquarters, local – and ongoing – training should be offered to help people brush up on any issues.
Tight Controls With Operations
But, that also means you need to run a tight ship with a specific marketing plan. The plan helps with marketing, accounting, personnel, and overall clarity. Just like the manual, it should help eliminate questions. As The Wall Street Journal explains, not having this in place can lead to disaster because it will hurt you financially, decrease skills, and result in people not following your plan.
Emulate For Success
Another critical step is to analyze what works, and what doesn’t. Knowing this information will help your franchisees emulate your success. Whether franchises involves food, the film industry, or something else, there is a reason most of them succeed. The information you gather now will help you understand what to implement, and what to leave out.
Franchising a successful business takes planning and research. Knowing what you want, how to develop it, training staff, and making sure they follow the same plan is all necessary. Developing details now will help you succeed later.