You should learn how to franchise your business if you want to reach nationwide market for your products. Franchising means freedom. Franchising your business will require copying your exact business and allowing other people, franchisees to use your business trademarks, name and business model to set up their own businesses in suitable locations. In order for your business to franchise successfully, you should determine the profitability of your current business. The business model should be one that can be copied easily by franchisees.
You will be able to make money from franchisees through:
– Initial fees.
– Royalty frees for the use of your business trademarks.
– Returns from training of franchisees.
Suitable ways on how to franchise your business
Franchising your business will requires you to prepare well and identify suitable ways to:
– Network your existing enterprise.
– Sell your franchise option to potential franchisees.
– Compete with other franchisers operating similar establishments.
– Evaluate their performance regularly.
– Grow the franchise business.
– Hire franchisees.
Step by Steps guide on how to franchise your business
Write down a good business plan: The business should be clear and realistic.it should contain information on funds, objectives, mission and vision of the business.
Design a good operations manual: This manual will act as an instructor to the franchisees on how to run their entities. The manual can be printed or posted on personal and confidential intranet sites.
Allocate funds for research, hiring and training, support costs, and legal charges.
Test the future development of your franchise by setting up of a franchise pilot outlet. This will enable you to determine whether franchising is suitable for your business and that you have understood how to franchise your business.
The following are tips of how to franchise your business:
a) Your franchise structure should sell itself. They should be clear and effective to ensure you compete well with existing franchise market. The structures should be clear so that the franchisees can copy and use them in their new outlets.
b) Develop a strategy for hiring new franchisees (or firing uncooperative ones).
c) Decide the best model to use for your franchise business.
d) Determine initial and royalty fees franchisees are to pay you.
e) Develop marketing strategies for your franchise including advertisements.
f) Ascertain suitable territories for setting new business units.
g) Consult legal experts in designing your franchise agreement. The agreement should contain your rights, the franchisor and those of your franchisees.
h) Establish strong business structures and come up with operations manual.all franchisees should be given a copy of these manuals during periodic meetings and training.
Involve franchise consultants. Franchise consultants will show you how to franchise your business. Franchise consultants will assist you in:
– Determine the ability of the business to franchise.
– Selecting potential franchisees.
– Getting the best advice concerning important areas like marketing, effective communication, advertising and training.
– Strengthening the brand so that customers can easily recognize it.