Are you looking to transform your business into a regional, national and even worldwide
organization? Franchising it is a great way to go.
Franchising serves to both accelerate business over an expansive area and provide the capital needed for it. In addition, it avoids problems related to employees and the franchisee operators are motivated and driven to succeed. So, do you do this?
How to Franchise your Business
Put simply,franchising means selling franchise rights to investors under your name and system of operation. They open outlets under this arrangement, pay a fee to the franchisor to allow them operate the business, all under the franchise trademark. This payment also includes training on the business’ operation and at times site selection assistance.
Steps to Franchising your Business
First, of course, is to determine if your business can indeed be franchised. To help you figure this out, ask yourself whether your business concept has a wide market. Testing various markets with prototypes can help you determine this. Next, ponder on whether potential franchisees, the investors, will see your concept’s value. If they see it saleable they will commit to it. It has to be something unique that will draw the public, in addition to the investors.
In Tandem with the Law
Anyone looking to franchise should closely pay attention to the FDD (Financial Disclosure Document). It is best to hire an attorney for expert advice in this process. The FDD has information that one should strictly follow from setting of prices to determining protection of intellectual property to creating a franchise agreement.
Protecting your Brand
Your brand is your business. When franchising it, you’re giving other parties a mandate to represent it. As such, you have every right to be picky when selecting them. Be free and sure to screen the franchisees. Ascertain that they are fully capable of pushing your brand.
In addition, you should put clear guidelines on your brand’s policy and asset use. It will maintain a clear culture to the customers that will be crucial to growing your business.