Franchise My Business
The franchise model is a great way to expand your brand while capitalizing on other individuals’ time and money. Once the brand is recognized on a national platform, it becomes much easier to develop and enhance new product lines.
Here are seven reasons why you want to consider franchising:
1. The franchisee provides the required capital for each new location instead of the franchisor;
2. Your company can grow exponentially by opening up franchises instead of company-owned outlets as corporate capital and management time are no longer an issue;
3. Franchisees have an economic as well as a personal interest in ensuring that the new location succeeds. Because of their personal financial investment, franchisees will typically be more motivated than company employees.
4. A franchisee has the responsibility of running the store as though it is their own, and is required to perform all day-to-day operations and staffing requirements so that a franchisor does not need to commit time and money.
5. Franchising allows you to grow while maintaining significant control over the business.
6. The success of one location expands through the rest of the franchise network.
7. Your own locations benefit from the economies of scale that arise from the franchise network. Those savings make your company-owned locations more profitable.
8. You create a team and partner up with like-minded people who share your values and objectives of growing your brand.
REVIEWING ALL ASPECTS
Keep in mind that not every business may be suitable for adaptation to a franchise model. You must evaluate and assess whether or not it can be taught to individuals who are not from a business background. It is important to understand the costs that are involved, especially with recruiting new franchisees. Every factor must be taken into account before deciding to franchise your business.
Training and Support
What type of training are you going to have to educate new franchisees in your business? You must always provide constant support. Your franchisees are only able to make success of your business if they have sufficient product knowledge that will only be obtainable through the training that they receive. Review the unique selling points for your business that you can teach your new recruits to the degree that they will deliver the pitch with confidence.
This is a key part of franchising your business. When people look at a business for sale, the biggest selling point to buying into a franchise rather than starting a new business is the value that comes from recognizable branding.
If you have a good logo, quality name and reliable service that is associated with your brand and product, then not only will customers buy it but franchisees will too. Your franchise brand should be both recognizable and desirable.
When someone is looking to become a new franchise owner, not only are they looking to be in charge but they want to know that there is a business plan or model that is successful. Therefore, it’s important that you develop an effective system for franchisees to follow.
On one end, you want your franchise owners to both succeed in what they do for you, and appreciate being part of your network. On the other, you want to make sure that they are following a plan so they will not give your brand a bad name.
Establishing Costs and Fees
You want your franchise to be something that people will want to invest in and feel that they are going to make a profit by participating. At the same time, you want to make yourself clear that your business should be taken seriously; including the level of personal and financial investment and risk involved in running one of your franchises. You establish the costs that are involved including royalty and franchise fees that need to be paid to you in order to maintain service, support, supply, etc.
FEASIBILITY OF FRANCHISING
You must determine if your business is franchise-able. To ensure that you are not making a mistake, you should examine a few aspects of your company to determine if you can or not.
Keep It Simple
The less complicated a business, the easier it will be to franchise. This means if you have a successful business model that you utilize in the running of your company on a daily basis then you should be able to pass it on to your franchisees. Anyone should be able to get a copy of your business’ owner’s manual and duplicate it. If you haven’t already, create an operator’s manual that has a training package. This is absolutely vital to any franchise becoming successful.
Other than the simplicity of the system that runs your business, your suppliers need to be available in whatever part of the country that you hope to begin expanding your business. Some products, especially something that is perishable, may not be available in different areas for the country. Be sure to only expand your business to other areas where the demographics are sensible.
HELP IS AVAILABLE
Looking for assistance in addressing the previous points? Are you unsure of how to go about assessing the feasibility of your business as a franchise? Perhaps you are already set on franchising but need help in building a strong franchise foundation to help you achieve your dreams? Franchising is a complex process full of pitfalls that can spell disaster for you expansion efforts. If you do not know what you are doing, why take the chance?
Francorp Inc. is the world’s leading franchise consulting firm. Since 1976, Francorp has worked with thousands of companies in assisting with business expansion and franchise development. The experts at Francorp possess the knowledge and expertise to help you identify whether franchising is right for you business, and the next steps to help you take your business to the next level. Francorp provides over 70 franchise services to help put your company into play with the backing of the professionals. For more information, click the link below or call 1-800-FRANCHISE to speak with a franchise analyst today.