Should You Franchise Your Business?
Updated: Aug 30, 2022
You should decide whether or not you should franchise your business after determining whether it is Franchisable. You can find out if your business should be franchised by following these steps:
1. Understanding the fundamentals of franchising
2. Identifying your personal goals
3. Identifying the business goals
4. Identifying the strengths and weaknesses of your business
5. Understanding the costs of the franchising
6. Find out what happens after your franchise
How To Franchise Your Business?
Step 1: Understanding the fundamentals of franchising
Franchising is about taking the things that have worked for you - your name, your brand, your expertise, and your systems - and teaching others how to replicate your success. Of course, franchising involves more than that; but generally, this is all it involves. Franchises are business models where you, as the "franchisor," allow another person, as the "franchisee" to copy your business model and duplicate your business at a new business location.
Step 2: Identifying your personal goals
● Do you take the time to learn about franchising?
● Do you market, promote, and sell franchises?
● How can you invest in systems and infrastructure that will help you train and support franchisees who will, in turn, help you grow your brand?
● What are the best ways that you can utilize to promote your brand and learn more about the franchising industry at franchise trade shows, networking events, and education events?
Step 3: Identifying the business goals
● Are you looking to expand your brand's reach?
● Want to expand your market reach?
● Interested in building franchise support and training systems?
● Are you interested in partnering with franchisees who will become an extension of your brand?
Step 4: Identify the SWOT of your business
You must ask yourself an important question regarding your business' strengths and weaknesses, as well as the factors - strengths and weaknesses - that you must evaluate.
Step 5: Understanding the costs of franchising.
Without the right capital and investments, you cannot succeed in any business or industry. Franchising is no different. Far too many emerging brands venture into franchises without adequate preparation. Many franchisees devote all of their resources to the franchising process, such as preparing the operations manual, the Franchise Disclosure Document, the franchise sales process, etc., without setting aside a budget for franchise sales, marketing, and promoting their franchise brand.
Step 6: Find out what happens after your franchise
● Become a franchisee
● Working with professionals that will support your new brand as a franchisor
● To network with other franchise professionals and franchisors, attend franchise conferences and trade shows
● Develop and implement a smart marketing plan that takes into account your brand story, PR, marketing materials, organic SEO, franchise brokers, and broker organizations
● Develop a franchisee training program
You should evaluate franchise ability factors and have an open discussion with your franchise lawyer about whether franchising can help you accomplish your growth goals to determine whether or not franchising is right for you. There is so much more to franchise success than planning, execution, and associating with trusted advisors who will help you elevate your business.