How to Franchise a Business in 2021
You’ve worked hard and learned a lot while developing your company, and now you’re ready to take the next step and franchise a business. If you’re ready to look into how to turn your business into a franchise, it’s important to have a good understanding of the steps involved.
What are the Steps to Franchising a Business?
While every region has its own special requirements for franchising, much of the core components are uniform, no matter where you want to set up the franchise. Here’s a rundown of the steps you can expect to take when franchising a business.
Research the Business
A common question from potential franchisors is, “Where should I start when I want to learn how to franchise my business?” A great starting point for you is to research the business.
Doing your research gives you a good idea if your business is in a favorable position for franchising. Does your company have robust training and recruiting programs and a strong and flexible supply chain? These are just a few of the must-have features when you set out to find out how to franchise a business.
Prepare Your Financial Disclosure Document
Your financial position dictates how prepared you are for franchising your business. That’s where the financial disclosure document (FDD) comes into play.
Your FDD is a crucial tool in your quest to discover how to franchise a business. In the FDD, the franchisor lays out all matters financial—franchise information on corporate ties, management team information, and more. Of particular importance in the FDD are the sections detailing franchisor-franchisee obligations, fees, and initial investment requirements.
Research Real Estate
Location is everything in business, so it’s natural that research on real estate is a crucial step when you’re studying how to franchise a business.
Investigate real estate markets in every region in which you hope to launch a franchise. Franchising your business successfully hinges on finding the right local sites, so do your homework to maximize your chances.
Create Your Operations Manual
One of the great advantages of a franchise model is the expectation by customers and investors of brand consistency. We take for granted that a franchise site in one part of the country will share core operational guidelines with that franchise’s locations in other regions, and the operations manual is the document that ensures this is the case.
Your operations manual lays out the business’s procedures and policies for your franchisees, including all how-to guides and any other key instructions needed for smooth and consistent operations. It’s the most important set of rules your investors will have, and it needs to be well-designed and easily understood.
Develop and Register Brand Trademarks
As a franchise, your brand is your public face. As such, a crucial aspect to developing a plan for how to franchise a business is creating a memorable brand.
Brand recognition and association do much of the marketing work for successful franchises. Take the time to develop a brand that lets you stand out from the rest while appealing to the customers you’d like to attract.
Build a Budget
Franchising a business is in many ways the most American of activities, with roots that reach back more than a century. And the same business rules apply now as then: your budget is critical.
The budget you lay out dictates your franchisee’s financial moves, so it’s important to get it right. Do your due diligence to ensure that your budget is realistic while remaining within reason. You’ll likely need to fine-tune the budget as your franchise grows and matures.
Recruit Your Franchisees
When you franchise your business, you rely upon your franchisees to maintain the high standards you establish. So, make sure you recruit franchisees who share your worldview and business approach.
The better you and your franchisees mesh, the more smoothly your company will operate. Make clear to potential investors any cultural or business philosophies you like to see embodied in your franchise sites, and select like-minded individuals to run them.
Find out how Franchise Opportunity Consultants Improves the Franchising Process
Franchise Opportunity Consultants understands how complex and time-consuming the franchising process can appear. We’ve developed a time-tested system, and our team of industry veterans are here to help business people realize their dreams of turning their businesses into franchises.
Find out how you can establish your own Franchise Opportunity Consultants franchise. Sign up for your copy of Shaping the Future of Business: How Franchise Opportunity Consultants Helps Clients Grow.
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Find Out How Franchise Opportunity Consultants Improves the Franchising Process
Franchise Opportunity Consultants understands how complex and time-consuming the franchising process can appear. We’ve developed a time-tested system, and our team of industry veterans are here to help businesspeople realize their dreams of turning their businesses into franchises.
We’re looking for partners to help us spread the word across the country and help people get their franchises up and underway. If you’re looking for a way to turn your business savvy and leadership potential to assisting others and building the next generation of business leaders, we might be a perfect match for your interests.
Find out how you can establish your own Franchise Opportunity Consultants franchise. Sign up for your copy of Shaping the Future of Business: How Franchise Opportunity Consultants Helps Clients Grow.
