Most franchise developers will tell you that to become a franchisor you have to prepare a Franchise Disclosure Document (FDD) & Franchise Agreement, and you have to register in the 15 or so states that regulate franchises. What they forget to mention is that the document preparation and registration process, while complex, is just the tip of the iceberg when it comes to entering the franchise world.
The most important step in becoming a franchisor is to ensure that your business model is well thought out; you have a system in place that can be conveyed to new franchisees, and that you have a competitive advantage to offer your prospects. And you can’t stop there. Once you have a solid strategy in place, you have to examine every element of your brand — your company’s name, trademarks (logos, colors, slogans, mascots, etc.), messaging, marketing collateral (brochures, letterhead, business cards, marketing pieces), advertising, website, and so on — to ensure that sends the right messages, targets the right audiences, and most importantly, that it is strong enough to compete in the ever expanding franchise marketplace.
The beauty of franchising is that it offers people a system, a unique way of operating that is standardized and built around well-worn and time-tested efficiencies.
But it’s also an industry that begs numerous questions – especially for those considering trying their hand in the business, maybe for the first time.
Undoubtedly, to grow a business, franchising is one of the fastest ways. In a just couple of years, the recent spate of franchises in the country has seen branches of many businesses double, or even triple due to their decision to open up the business to franchising.
For one, by both managerial and financial ways, franchising allows you to build a store you will earn from without using much of your resources on how to franchise. The cost of setting up a store will fall on the franchisee’s shoulder, as well as that of running it. However, it is your responsibility to supply your franchisees with a working business model as a franchisor and then providing training and assistance needed to get the business going.
People are looking for “how to franchise your business or how to franchise my business”, for the enhancement of business. To grow the business with great profit, it is a fact that franchising your business is the fastest way. You can easily achieve the success by franchising your business with proper guidance and strategy because the best part of it is that you already own a brand name and because of this, you do not have to make efforts to regain the reputation. To experience the services of your franchise, your previous brand name encourages the people.
What do McDonald’s, Subway, Ramada, GNC and Jani-King have in common? They’re run as franchises, which mean anyone can buy the right to own and operate one of their outlets. Franchising is an excellent plan for some small businesses, particularly those whose distinctive business models can be easily duplicated and scaled.
You have to hire a person who will take care of your business with proper knowledge and responsibility for franchising your business. The person is known as franchisees. To that franchisee, proper training is provided so that he can understand your product and strategies of the business properly. Because these are the main things where if you invest more then you will get the perfect results, therefore, never think of spending less on these issues. This is how to franchise for your business. For answering franchise inquiries, have a solely dedicated hotline ready. Make sure the person answering the phone has a complete grasp of your franchise offering and he/she is competent, as this will be your initial encounter with the prospective franchisee. Before giving out too many details about your franchise package, a good way to weed out the serious investors from nuisance callers is to require a letter of intent.
Buying a franchise has several advantages. To take the brand name of your business at top of the hill, a franchise system is the best way. It is the best way of generating profits at low budget and this has been already proved. Even if you have weak skills in sales and marketing, you can indulge in this business. You get a great opportunity of dealing with minded entrepreneurs who help in improving your business skills when you buy a franchise. This is how to franchise for your business as they have great awareness about the current market scenario, dealing with established franchises help in improving the brand names.
Employees make the business not business makes the employees therefore; you can easily hire good employees, which is a great factor for the success. Therefore, these are some facts about buying a franchise. Start thinking about this and grow your business at a faster scale, if you have not thought in this way yet. It is now time to get people interested in owning a piece of your enterprise, having gone through the entire process of getting your business ready for franchise. through your company’s website, your franchise association’s website, print advertising in industry publications, and by having a special section on franchising in all your marketing collateral are the best ways to market franchise opportunities. This is how to franchise for your business.
How to Franchise
Get a Franchise Consultant. If you have the money and want to maximize your chances, approach a franchise consultant to tweak your plan. Consultants have seen it all before and can spare you the pain of reinventing the wheel.
Get a Franchise Attorney. As a franchise, you’ll have to prepare a number of business and legal documents for perusal by potential franchisees.
Get to Marketing. Now that you’ve decided to franchise, your highest-priority task is convincing potential investors that they should become your franchisees. This is something a franchise consultant can help you with. Read other franchise prospectuses to see how franchises pitch themselves to the marketplace, and bear in mind that you must follow the rules in the creation of a prospectus.
Redefine Your Role. Until now, you may have been deeply involved in the operational side of your business. As the CEO of a franchise company, you have to leave behind the sole proprietor mind-set. Now your role is to drum up excitement among potential franchisees. This means that you have to redirect your time toward marketing activities: supervising, attending speaking events to acquaint the market with your franchise and tapping connections provided by friends and family.
Remember, you will not only have to compete for customers with other businesses in your industry, you will have to compete for prospective franchisees. Chances are you will not be the first franchise in your vertical. In fact, you may have to go head-to-head with a franchise competitor that has already sold hundreds or even thousands of units.