You want to turn your business into a franchise but you’re unclear as to how. Here are a couple things to think about to help you out:
The first step you should take is to do some research through the International Franchise Association, whose members include franchisors, franchisees and suppliers in many different industries. Their website includes resources to help you get started such as information packages, industry articles, and a forum where you can ask questions and get advice from other members. Once you’ve familiarized yourself with some of the franchising basics, there are a few key areas to focus on.
Guide lines and Procedures : To replicate the success of your business by franchising, you need to create a complete set of guide lines and procedures for your franchisees to follow. Along with a training program to teach all aspects of the franchise to your franchisee and a marketing plan to help them start their business. Make sure all the guide lines are as detailed and as specific as possible. The reason you want to do all this is because your franchisee(s) will be representing you and your franchise organization.
Finances: In order for franchisees to make a educated decision on whether or not to join your franchise organization, they need a clear picture of where your business stands. They can do this by seeing your audited financial statements. There are many skilled accountants to help you prepare these documents and give you advise on how to set up your business for the best results.
Legal: All franchisors are legally bound to provide a Franchise Disclosure Documents to any potential franchisees before the sign an agreement. This document provides a complete history about your franchise, mentions any other companies associated with you, or if there have been any lawsuits or bankruptcies. It also must be presented to the franchisee at least 14 days in advance to signing. These documents can get very confusing, so you will want to hire a qualified franchise lawyer to make sure the contracts are correct and contain all information necessary to meet all franchise guide lines.
Attitude: Keeping your franchise business and your franchisee successful, a positive attitude is one of the most essential traits you can posses. The way you communicate to your franchisee(s) about how you would like to have your franchise business operate will take a certain level of diplomacy and tact, so having the correct attitude will only make things run smoother and be more successful.