4 Things You Need To Know Before Franchising Your Business
Franchising has long been a popular way for ambitious entrepreneurs to rapidly expand their brand in a sustainable and affordable way. However, as with any form of business expansion, it is essential that you don’t make any serious moves until you are absolutely ready.
Here are four things that you need to have in place before you can seriously think about franchising your business.
Can You Distill Your Core Concept?
In order to franchise your business, you need to be able to distill its core components into something that you can package up, reproduce, and then sell to interested franchisees. That means that you need to devise a series of repeatable procedures that you can use to train new staff. With franchising, your goal is to have every franchise operating in the same way. There may be room for individuality in terms of the way that your franchisees decorate their outlets, provided they stay within your branding guidelines.
However, you want every one of your franchises to operate using the exact same policies and procedures – it is important to create consistency for both your workers and your customers.
How Will You Select Your Franchisees?
Once you know exactly what you are going to be selling to franchisees, you then need to think about what you are going to be looking for in the franchisees that run your business. Remember, you want people who you can trust to run each of your franchises the way that you want them to be run. Make a list of the skills and qualities that you will require from your franchisees before you get too deep into your search for them.
Have You Considered The Potential Pitfalls?
When franchising goes smoothly, it’s an ideal arrangement for both parties. Franchisers get to make money and expand their brand without having to take on the same financial and administrative burdens that usually come with opening up new business locations. Franchisees, meanwhile, get to run their own branch of a business without having to invest in marketing and branding, which is handled centrally.
However, as with any kind of business arrangement, disagreements can and do occur. It is important that you are prepared to handle any issues that might arise, you don’t want to be blindsided by anything that you can prepare for. It is a good idea to speak to a Franchise lawyer so that you have a contact if and when you need them.
Are You Prepared To Invest In Training?
In order for the franchise concept to work properly for both of the parties involved, it is vital that the franchising business is prepared to invest properly in a rigorous training program. If you want consistency across all of your franchises, then the best way of achieving this is through a reliable training procedure. Unless you can properly teach each franchisee how to run their franchise according to your vision, the concept is going to fall apart.
When it is done right, franchising is a win-win situation for everyone involved. As the franchising business, it is up to you to sell your concept in a way that franchisees will find helpful. Make sure that you have everything listed above in place before you begin.