Franchising your business can be a very positive move, both personally and professionally. There are many benefits to turning your business into a franchise: the growth of your brand, distribution of responsibilities and workflow and the increased revenue as a result of franchise fees. As a business owner it is important to be mindful of long-term growth, particularly in terms of the longevity and value of your company. Franchising can be a very selective process, allowing you to control who will join your team and represent your business.
Benefits of Franchising
There are many advantages to franchising your business. Franchising allows you to expand your business rapidly and at a relatively low cost, as franchisees will provide a lot of the capital themselves. As a franchisor you will also have the opportunity to receive continued income from royalties. You can retain control of your franchise model while delegating the management and operation of different franchise units to chosen franchisees. This ensures consistency, uniformity and cohesion across the brand. The insight of your franchisees can also allow you to improve your franchise, both in terms of the efficiency of the franchise system as a whole and the nature of the product or service delivered to the consumer. All parties can benefit from this continuous improvement. The combined resources that are provided when franchisor and franchisee merge could result in increased capital for local, domestic or international advertising.
Evaluating Your Business For Franchising
Before you begin the process of franchising your business, it is important to discern whether or not your particular model is suitable for franchising. Ask yourself the following questions when considering franchising as a possibility:
- Is your product/service of high quality? Can this level of quality be ensured and sustained throughout increased production/distribution?
- Have you been in business long enough to demonstrate the profitability of your model to potential franchisees/investors?
- Have you already had enquiries about franchising?
- Can your system be easily taught to others? Will you be able to provide training and/or an operations manual to franchisees?
- Are your estimated startup costs reasonable?
Steps to Take
Once you have decided that franchising is for you, there are a number of steps to take in order to complete the process.
Develop a business plan for your franchise. Even though you are already in business, the franchising process should be considered as a separate business undertaking. Your franchise business plan should look to the long term and include a review of where your business is at currently and how you achieved success, as well as a review of the product or service that you currently offer. An analysis of the market your product or service currently operates in is also useful, as is identifying who your competition is and estimations for the future of the market. It is important to identify what your goals are as an entrepreneur. Your business plan should include projections for your business; where would you like to see yourself in five/ten years? How will your business have developed through franchising? A projection of your financial expectations for each year of your plan would also be a practical addition.
Familiarise yourself with the franchise industry. Visit franchise shows to get first-hand insight from those who are established in the business. Many shows and exhibitions feature seminars from guest speakers who have achieved notable success in their careers. These events can be a fantastic way to immerse yourself in the world of franchising.
Take the necessary steps to protect your business by registering your trademark(s) or service mark(s), if you have not already done so. This ensures that your products or services are protected from infringement, as well as guaranteeing that your brand is not infringing on existing trademarks or service marks, which could lead to legal complications further down the line.
Seek legal guidance. It is important that you are guided through the legal aspects of the franchising process by a competent professional. Many solicitors specialise in franchising and business expansion and will be able to offer you valuable advice throughout the process.
Evaluate your business and carry out a redesign or restructuring if necessary. When you offer your franchise opportunity for potential franchisees to invest in, you are essentially promoting a product that you are keen for others to buy. The period when you are thinking about franchising your business provides the perfect opportunity for you to assess how your business appears to others, and to evaluate the appeal of the company aesthetic, including branding, logos, your storefront or website, employee uniforms, menus (if relevant), business cards, etc. Do you have any social media channels, and if not should you explore this? It is important that your corporate identity is consistent and effective across all mediums, both before you begin the franchising process and after your franchise model has been established.
Plan your advertising strategy. In order to begin franchising quickly and effectively it is important that others are aware of your brand and franchise opportunities. The websites within the Franchise Direct network have a very wide international reach, allowing you to promote your franchise to potential investors in the best way possible.
Develop your training process. In order to ensure standardisation and cohesion across your brand it is crucial that franchisees receive the correct training and support. Decide who you want to carry out training within your team, and what this training will consist of. It is also important to provide some form of ongoing support to franchisees throughout the length of the franchise agreement, in order to ensure a positive business relationship and continued success for both franchisor and franchisee.
Franchising your business can lead to the growth and development of your company, as well as a renewed sense of job satisfaction, purpose and professional fulfilment as a business owner. There are a huge variety of franchises available on the market, indicating that there is space for every type of business – including yours. Franchise your business and advertise with Franchise Direct to increase your online presence, brand exposure and lead flow.