Are you considering turning your business success into a franchise. Clone your pet is like making a decision to do so. Exciting, right? Let’s take a look at the process to turn this dream into a reality. Secure your future success by learning “How to Franchise a Business.”
Get your home in order. A solid business plan is essential. Imagine that you are baking a cake. You want to perfect the recipe before sharing it. Franchising will magnify any issues that you have with your existing operations.
Create an operation manual. It is the Holy Grail for every franchisee. This should include everything, from the opening procedure to standards for customer service. Make it as foolproof as possible. Imagine that you are writing for someone who has never been to your establishment before.
The legal stuff follows. A Franchise Disclosure Document is required. It’s not just some paperwork, but a requirement by law that gives potential franchisees all the information they need to know about your company. This document should be drafted by an attorney with experience in franchises. This is a crucial document.
Let’s now talk about money. It’s not cheap to franchise. Initial costs include legal and marketing fees, as well as ongoing costs for support once the franchisees join. Prepare a financial plan to help you understand what’s involved.
You’ll also need to market your franchise and attract prospective franchisees. You can use multiple platforms, including social media, franchise fairs and word of mouth. Be sure to highlight the reasons why people would invest in your brand.
Another important factor is training. Franchisees need to be trained thoroughly on how they can run their location. Imagine teaching someone to ride a bicycle. You can’t simply hand over the keys to them and expect that they won’t crash.
Support doesn’t stop after training. For consistency to be maintained across locations, regular check-ins are essential. Create systems to facilitate communication and solve problems.
Branding is important! All franchises should have the same logos, customer service and interactions. It’s vital to your brand.
Don’t take my word alone! John’s Coffee House is a good example. It was a small café that became a national chain by franchising. John began by creating a guide for making the perfect coffee every time.
He then hired an attorney who was familiar with the laws governing franchising to write his FDD. He spent money on marketing campaigns that targeted coffee lovers who wanted to own their own café but did not know how.
John set up comprehensive programs that covered everything from how to make espresso shots, to efficiently managing stock. All the while maintaining his quirky brand across all of its locations with regular support and check-ins.
You’re done! It’s not easy to turn your company into a successful franchise, but with the right planning and execution it can be very rewarding.
Have questions? Or any tips to share with us? Comment below if you have any questions or tips!