Franchising is one of the few ways to expand your business without getting into debt or other financial constrains. The initial cost of setting up a franchise is met by the franchisee. In addition, the franchisee pay royalty and promises to abide by the rules you set up. Here is how to turn your business into a thriving franchise.
In turning a business into a franchise, you need to evaluate your business from inside. This means that you must understand your business such that you can write a manual about how it is run. For instance, if you cook chicken, you must create a manual that tells the franchisee how to produce a “copy” of your fried chicken.
Determine if the Business is Franchise-able
There are some businesses that cannot be franchised. Production of Coca Cola Brands cannot be franchised because their formulae are a secret. Only really good brands can be franchised. In addition, it must be easy to train people to run your brand as you want.
The other factor to consider is returns. Franchisees want to make money from your idea. You will have a hard time in maintaining your franchisee if franchisee cannot make 15 to 20 returns after royalty.
Growth Plan Document
This document outlines all the concerns that the franchisor may have. The document should include challenges in running the business, how to grow the business and sourcing for staff.
While the language for writing this document should portray a positive image, it must not hide the truth. The financial performance part of this document is of interest to all.
Get Legal Documents
Before getting the legal documents, learn about the legalese of running a franchise. You will need an official contract to be given to franchisees. You may be required to re-register the company again. Documents outlining your relationship with that of the franchisee and your role are of upmost importance.
Establish Quality Control Department
The idea of franchising is to create the same customer experience among all customers. This department will be responsible for carrying out check and controls to ensure high standard are met. The quality control department will also train all workers on how keep up with the high standards of your brand.
Focus on the Brand
Before deciding to franchise your business, you need to grow and build your brand. Make your brand irresistible among customers and potential franchisee as well.
Sell Your Franchise
After building your brand, it is now time to market the franchise to potential investors. DVD and a website will come in handy here. In addition, you need to produce a number of copies of all the documents that the franchisee will need to sign.
Support you Franchisee
When your franchisee succeeds, you succeed. If your franchisee fails, your brand suffers. You must therefore make it a priority to support your franchisee to set up. Support should go on until the new owner can understand the culture and the nitty-gritty of the brand.