When you start to look into ways of expanding your business, there are a number of options. One of these is to turn your sole business into a franchise so that other people can open up branches in their areas. A franchised business runs on royalties and franchise fees and that means that, once you have the franchise model in place, you can make money without needing to do any more – there is always a guaranteed revenue stream as long as you have sold the franchises correctly.
If you like the idea of turning your business into a franchise, here are some ways to ensure you are ready and can get started.
Organization Is Key
If you aren’t organized, selling your franchise model is going to be difficult. When someone is looking to spend thousands of dollars on buying the franchise for a new business, they are going to want to buy the best. A disorganized, chaotic kind of business that has no set plan is not going to be their first choice – remember, there are thousands of franchises out there for them to choose from.
Although the process of becoming more organized will take some time, it is absolutely worth doing because once you can sell your business as a franchise, you can make money by doing very little and that is everyone’s dream. Even if you decide that franchising isn’t for you, an organized business will certainly run more smoothly, so there are benefits all around.
The best way to get organized is to develop a business manual of processes, systems, and methods so that not only can you and your employees follow it, but so can anyone who wants to invest in your franchise model. If everyone follows the same set of rules, it should be difficult to tell the original business and the franchised one(s) apart.
Build Your Brand
When you are franchising your business out, perhaps the most valuable asset you have is your brand, so you need to build it up and then protect it. Your brand is all about what your company represents so it needs to be true to you and your original aims – don’t allow it to be bent to fit someone else’s ethos. When you ‘hire’ franchisees, they need to fit in with you, not the other way around.
Establish clear guidelines around your brand and what can and can’t be done with it. That includes company vehicles, letterheads, your logo and website, and, of course, social media. You need to make sure that your company is represented well at all times.
Consult An Expert
Although it may feel as though you can happily go and create a franchised model of your business and put it up for sale by yourself, it’s far better to consult an expert (or more than one expert) about the process. This will ensure that you are going about things the right way in terms of both legalities and practicalities.
For example, speaking to an attorney is a good idea. You’ll need to complete some important paperwork including the franchise disclosure document, so having an attorney to hand to go through the ins and outs and make sure you’re doing the right thing is worth the time and money that it will cost. Getting a franchise model of your business right can bring in large profits; get it wrong, and you’ll waste a lot of your company’s capital. Spending at the beginning should reap rewards in the end.
It may also be worth contacting a business acquaintance who has already been through the franchise process. You will need to set a pricing structure that makes sense, create a franchise agreement, work out your intellectual property protection and so on. If you speak to someone who has already been through all of this, it will make things a lot easier and ensure that you don’t miss anything crucial out.
When it comes to picking the right franchisees for your business, it’s not just about saying yes to anyone who happens to have the right amount of cash for you. You need to be much more selective because whoever you sign up with is going to be representing your company and if they aren’t right, they can easily ruin your reputation. They need to be a good fit, and they need to understand and believe in the aims and goals of your company so that they can enhance them.
Rather than allow people to fill in a form online and download a training pack, it’s a far better idea to interview them and ask the right questions. Since franchises are designed to boost your business across the country and even the world, a face to face meeting may not be possible, but a phone call or Skype or video chat can be arranged. You should be confident that the person you are going into business with will be able to represent your company in the best possible way.
Monitor The Situation
What you don’t want to do is sell your franchise and then not check in from time to time. Although franchising your business does allow you a lot more freedom and will bring you more money, if you don’t keep up with what’s happening with your franchisees and their businesses, you might miss something important.
Using Instrumental Application Monitoring to find out how each branch is doing will help to keep you up to date and on top of any issues before they become too large to deal with properly. The smooth running of your franchises is essential for success, so you do need to keep on top of them all. This kind of app monitoring will also allow you to see how profitable each section is becoming, and will show you where to target for additional training, for example.
Choose The Right Locations
Just as you need to be selective when it comes to the people who want to be part of your business, you also need to be careful about choosing the right locations for new franchises. You might want to have a branch in each state, or even each city. You might only want to concentrate in one geographical area because the product you sell is fairly niche. You could also want to go worldwide. Make sure you know what you want to do on this front before you start receiving applications from franchisees because you need to get it right from the start.