Learn How to Franchise Your Business Today!
The process to franchise your business is a big and scary step in the progression of a business. Franchising has been proven to accelerate the growth of your business at a very rapid rate. You may be wondering how to get started with franchising so that you don’t make any mistakes and the transition can be smooth. If you want the process to be smooth and have a greater chance of being profitable, here are 7 steps to successfully franchise your business.
1) Organize and Prepare Your Business
Just because you own a business doesn’t mean you can franchise and succeed. You need to make sure your business is prepared and organized enough to be successful in franchising out. Think through how your business works. Your future franchises need to to understand the business model and how it works in order to run their own franchise.
You need to do the research. Do you have the research to back your decision to expand via franchises? Market research is crucial to know if there is a demand for your product or service. You also need to know if the market is saturated or not. If the market for what you have to offer is too saturated, you will fail. Look for locations or niches in the market that aren’t saturated so that you can make your own success.
2) Hire an Attorney
There are a lot of legalities with franchising and you want to make sure you do everything right. First things first, you are going to need to fill out a Franchise Disclosure Document with the Federal Trade Commission (FTC). The language and particulars of this document are so specific that you will need an attorney to correctly draft it. This is only at the federal level, you also need to consider state laws and regulations. You probably aren’t going to want to put in the time and effort to know all of these things because you are still running your business, leave it up to a lawyer to do that work for you.
3) Decide on a Franchise Model
How far do you want your franchise to expand? How many franchises do you want? These are questions that you need to consider while planning your franchise expansion. Decide on places to expand to, based on your market research of course. You need to expand where it makes sense, so be picky about locations. Decide on how fast you want to grow. Sometimes rapid growth is detrimental to a business, pick a rate of growth and expansion that will only benefit your business.
4) Choose the Right People
This is probably the most difficult and important steps in the franchising process. If you don’t choose the right people to franchise your business, your company can fail very quickly. You need to be able to trust and maintain a relationship with your first franchisees. It is easy to find people with capital, but it is harder to find the people with the right experience.
5) Build and Maintain Your Brand
Don’t let your franchisees go off and do their own thing with your business name. Your brand is the most important aspect of your business. When you franchise your business out, you essentially give the reigns to someone else for your brand. In order to avoid a brand tragedy, make sure you have strict rules and guidelines when it comes to your brand image. Don’t let your franchisees alter or change your brand in any way unless you want your overall brand to change.
6) Find a Mentor
There have been plenty of other people who have already experienced what you are going through right now. Find a mentor. Your mentor can guide you and give you advice about the process of how to correctly franchise your business. They should be someone you trust and that has the time for you and your business. Your mentor has the capability of being the most valuable asset to the growth of your business.
7) Support Your Franchisees
Your franchisees need to know that you trust and support them. Franchising is not only scary for you, but it is also scary for the franchisee. They are investing a lot into the franchise and have everything to lose if they fail. Give them the support they need to succeed because if they succeed, your business succeeds and progresses.
Divvy Can Help Your Franchises
If you are a franchiser or a franchisee, Divvy can help you with all of your marketing needs. From print marketing to digital marketing, whatever your needs are, divvy can help. Fill out the form below or give us a call at (801) 224-8666 to see how we can help you. Come experience the Divvy difference today!