We’ve put together a checklist of six essential things that you need to start before opening your franchise in 2018. Do you have everything you need for franchising your company? If you’re not there yet, don’t worry we’re here to assist you!
The Franchising Checklist – 6 Things You Need Before Your Business is Franchise Ready
Legal Documents – Including Your Franchise Disclosure Document (FDD)
You don’t want to be left open to litigation. Everything about your business needs to be legally documented before you can start thinking about opening a franchise. Make sure everything is solid on paper.
One of the most important documents is your Franchise Disclosure Document (FDD.) This document discloses to a prospective franchisee everything they need to know about your company, including:
– Information about You (the Franchisor)
– Information about the company officers/owners and their background
– Prior bankruptcies, lawsuits or criminal issues
– Company Financials
– Company’s number of open and closed franchises
– Responsibilities of the Franchisee
– Responsibilities of the Franchisor
– Franchising Fees (Initial Investment, Royalty Payment, etc.)
– The detailed training provided by the franchisor
– And much more…
This document also includes many exhibits including a Franchise Agreement. This is a more specific contract that supplements your FDD. The Franchise Agreement goes into the details of the franchisee-franchisor relationship.
This description and legal section is non-exhaustive. If you have questions about what else is covered in a strong FDD, contact expert franchise consultants at Franchise Creator.
A Strong and Adequate Training Process
You need your franchisees to be successful and having a great training program that teaches a new franchisee everything they need to know regarding the day to day operation of the business is essential to their success. Having properly trained employees at the headquarters is also essential, as they in most cases are involved in training the new franchisees. Put together an employee training program that you can hand off to your franchisees.
A Comprehensive Franchise Operations Manual
Document the practices that you use at your first location level. Your operations manual should cover everything that is needed for the day to day operation of this business. Everything from the approved vendor’s list, opening and closing procedures, cleaning and maintenance, POS terminal, software and hardware usage, customer service methods, all the way to the opening and closing hours should be included in this manual. Some operations manual also include an employee handbook and an instructional guide for managers. Consider hiring a videographer to produce a series of videos describing different operational activities. It can do the job without you needing to be there.
You’ve figured out what works for your business. Having learned from your mistakes and developed the best workflows, it’s your job to impart this knowledge to your new team. Develop onboarding materials that bring your new franchisees up to speed in no time.
Define Your Franchise Brand
What makes a scalable franchise appeal to a large consumer base? When a customer can walk into any location and have the same experience. That’s brand continuity in action.
Decide on a color palette that all physical locations can conform to. Have all franchise employees wear the same uniform. Train every franchise location’s staff in the same protocols. Deliver consistent, quality service.
Replicate your brand’s identity across all locations. As reported by Franchising World, consistency is the key to branding. Whatever location your client’s choose, each franchise should give an identical occurrence.
Branding is the single most important part of your business. So be sure to protect it. Your business name and logo must be unique and must be global. You should refrain from using names that are more locally trended and don’t mean much outside of your town or city. The next step, be sure to protect your brand by applying for a federal trademark. The domain name for your brand should also be available and owned by you. You don’t want consumers to land on a competitive page when searching for your brand.
Establish Benchmarks to Measure Success Across All Franchise Locations
When you have properly trained franchisees and a defined brand experience, you need a way to measure your successes and failures. Establish benchmarks for success and help your franchisees meet these goals.
This is all about measuring quality control. Decide on specific targets that all franchise locations must hit. This could be measured in sales, customer acquisition or any other aspect you decide. Furthermore, have a way to track internal requirements – like staff attendance. This makes sure your franchisees meet these standards.
Franchising is a learning process. Not everything will work the first time around. Some ideas may completely fail. By testing your process and constantly re-tooling it, you’ll find ways to improve your business.
Recruit the Right Franchisees
When it’s time to open your franchise operations, you need the right talent. Find the best people to be your first franchisees.
You’re not just looking to make a royalty fee. You’re looking for capable, dedicated entrepreneurs. Recruit business leaders that show enthusiasm for your brand. Their actions and integrity reflect on your whole company.
You can train just about anyone to do almost anything – but, you can’t train character. Look for trustworthy, authentic values in the people you bring on. In the best case scenario, you’ll work with your franchisees for years to come. Choose the right franchisees for a profitable and pleasurable experience.
Turning your business into a franchise can be one of the best business decisions you ever make and one of the most lucrative. If you think you’re ready to open a franchise in 2018 we can help make your dream come true! We’ll help you turn your company into the franchise it deserves to be, set you up for success, and be with you every step of the way. Let’s get your company franchise ready! Contact us today.