how to franchise your business. Franchising is a way of sharing your company with others. It is like giving away part of your business to someone else. Franchising offers advantages for both the franchisee and the franchisor, including lower start-up costs, built-in market penetration, and a proven business model that can lead to rapid growth.
Why franchise your business?
Let’s take an assumption! You are a well-known businessperson with a unique idea that is popular with your customers and that you have shown to be profitable and successful over a long time. It is true that the cost of expansion in terms of time and resources, as well as financial risks, is usually enough to put an MD or owner off – buying or leasing premises, stock, hiring/training new staff, overseeing, and monitoring are all of the capital that you may need to gain by gaining an investor or borrowing. For obvious reasons, many people despise becoming an investor in their business.
Why franchise a business?
There are many reasons why an increasing number of businesses are turning to franchises, here are just a few:
When you franchise a business, you bring in the financial backing, dedication and manpower of a local franchisee to drive your business forward in their territory. This allows your network to grow much more quickly and a lot more cheaply than ‘organic’ growth.
You, the franchisor, have few costs because the franchisee pays for all the equipment and set-up costs as part of their franchise fee.
“4 in 5 franchisees reckon that being part of a franchise has given them a competitive advantage in the last year  when compared with similar businesses that are not franchised”
“The recession appears to have had a limited negative impact on profitability, turnover and employment and business failure”
One reason for this level of security is that franchisors tend not to be exposed to the high levels of debt and overheads that are involved in non-franchised businesses.
However, the main reason for me to franchise a business is that each business in the network is run by a dedicated franchisee who will work tirelessly to protect his or her business.
In a franchise, the day-to-day administrative burden is shouldered by franchisees. This allows the franchisor to focus on developing and expanding their franchise community.
For example, one particular area of administration is staffing. With franchising, staff are employed by the franchisee therefore any problems are the franchisee’s to sort!
Naturally, the franchisor has to be on hand to provide support to franchisees when required, however, this is a lot less hassle than trying to do everything yourself.
Is my business “franchisable”?
If at present your business is making a profit then you are ready to franchise your business.
New franchisee business plan
The whole franchising process can be divided into the following steps: Checking out potential franchisees with the franchisor, Franchise agreement and all documentation related to the loan being used, depending on negotiation of financing; Motivation letter required by laws hiring
CONVERTING A BUSINESS TO A FRANCHISE
A business owner converts the business to a franchise to take advantage of franchising’s marketing and financial support structures. The process can be complex, involving various legal documents and negotiations with the franchisor.
In order to start the franchise conversion process, you’ll need an accurate plan for your business
Franchising as a Small Business Growth Strategy
Converting your small business in franchise model will make high profitability
Your own business will be expanded
The franchise model is the best way to expand your business and grow your sales.
A successful franchise plan should be written with the help of experts.
franchise business plan is the backbone of your successful franchise
franchise model will create a brand name
franchise system that should be tested by expert
best practices will come out with great franchise model
trademark office is must
To sell franchises appoint someone as full time with target additional locations must be targetted with the appointed person.
Connect with a Franchise Advisor Today.
Contact Franchise Advisor or join a training program to get an idea of how you can create franchise opportunity in your present business model
How to Turn Your Small Business into a Franchise
- Learn about the franchise business.
- Charge reasonable franchise fee
- Prepare perfect franchise agreement
- logo of your franchise business should be unique
- The complete procedure of trademark before entering into franchise business
- Make a plan before offering in which new location you want to expand your franchise business
- marketing plan for your franchise business
- new franchisor appointing category
- For brand recognition use some ideas or tie-up with a franchise consultant
- Ask franchise consultant to check all legalities
- site selection is a very important procedure
- To maintain a business relationship with the franchise owner appoint business relationship executive.
- operations manuals should be circulated to every franchise owner to run the franchise smothly.
- franchise disclosure document formate should be ready
- franchise owners audit system should be prepared
- initial franchise fee most of the companies charge at the time of application submission
- marketing tools
- prospective franchisee
- royalties system
- support franchisees system should be there
- ongoing royalty fees chart attached to the franchise agreement
Benefits of Converting business into Franchise
Business format franchising can be an extremely effective route to expansion for an established and profitable company. What it won’t accomplish is assist a business in financial difficulties in clawing back into profitability with the help of someone else’s money. It is a common belief among successful franchisors that a franchisee is more committed to acquiring business success than a salaried manager because of their vested interest in declaring the business a success. This viewpoint is based on a variety of factors. A franchisee will have chosen your franchise out of literally hundreds of options and is effectively giving a five-year minimum commitment to you.
The selection process for a franchisee should be many times more rigorous than that of a manager, and the calibre of the franchise should be extremely high. They’ve invested in your model with a combination of their private money and bank funding, and they’ll only benefit if the business goes on to be a success. With all of this and more at stake, franchising should provision your brand with the greatest chance to succeed in any “qualified” territory, maintaining your recruitment and selection strategies are sound.
How to advertise for new franchise applications
advertise on instagram
Target small business owners
use Social media for marketing platform
Frequently ask Questions
How do I turn my business into a franchise?
There are a few things you need to do in order to turn your business into a franchise.
First, you will need to conduct a thorough market analysis in order to identify the areas of the country or world where your business could be successful. You will also need to develop a business plan that outlines how you will expand your franchise and achieve profitability.
Once you have completed these steps, it is time to find an appropriate franchisor who can help you bring your business to life. A franchisor will provide guidance and support throughout the entire process, from concept development to eventual franchising.
Can I franchise my business myself?
There is no one-size-fits-all answer to this question, as the best way to franchise your business depends on the specifics of your business and what you are looking for in a franchise. However, some tips that may help you decide if franchising is right for you include:
• Do your research to determine if franchising is the best option for your business.
• Determine if you have the skills and experience necessary to run a successful franchise.
• Make sure you have a solid business plan before starting a franchising process.
• Evaluate potential franchisees carefully to make sure they are a good fit for your business.
• Be prepared to invest money in order to start a franchising process, and be prepared to monitor and manage your franchise closely.
Is it profitable to franchise your business?
There is no one-size-fits-all answer to this question, as the profitability of a franchise depends on a variety of factors specific to the business. However, some general tips that may help include carefully selecting a franchise concept that aligns with your company’s strengths and targeting locations where there is already strong demand for your product or service.
Additionally, it is important to create a solid marketing and branding strategy from the start, as franchisors typically require evidence of strong lead generation and conversion rates in order to approve a franchise agreement. Finally, always be prepared to invest significant resources into developing and sustaining the franchise system – this includes maintaining high standards for customer service, training staff members, and keeping up with industry trends.