How to Franchise Your Business
How to Franchise Your Business:
A Step-by-Step Guide
If the time has come to expand your brand into a franchise business, navigating the next steps can be complex and demanding. Introducing your business as a franchise opportunity requires meticulous planning and a commitment to supporting your franchise partners for sustained success. Our franchise consultants have compiled this 10-step guide to assist you in transforming your business into a franchise system and set you on the path to success.
Decide What You Want to Accomplish
Embarking on a successful franchise journey begins with a clear understanding of your short- and long-term goals for your brand. Take the time to articulate why and how you envision branching out, shaping the outlook of your franchise business.
Hire a Franchise Consultant
Selecting a franchise consultant stands out as the most crucial decision in the franchising process. Franchising is best learned through experience, and choosing a consultant with firsthand experience operating a franchise system is essential. Your franchise consultant will guide you to reputable franchise attorneys who, with input from the consultant, will draft the necessary legal documents, known as the Franchise Disclosure Document (FDD), for your franchise system.
Determine What You Have to Offer
Franchise development involves not only what you desire but also what you can provide to prospective entrepreneurs seeking a franchise. Collaborating with your franchise consultant, you will formulate a plan to position your offering for seamless expansion. Your consultant will review your business operations and suggest effective ways to deliver various services (e.g., weekly inventory) for franchisee operations.
Create a System for Vetting Partners
Resist the temptation to hastily engage with anyone expressing interest in franchising your business. Instead, set clear standards upfront for prospective franchisees, including criteria such as liquid assets, experience, and completion of training programs. Taking time to expand cautiously is preferable to rapidly having franchises appear and disappear.
Choose Your First Franchisee and Get Ready to Launch
With all the planning in place, it’s time for the significant leap. The first franchise location will scrutinize your business model and determine if further adjustments are needed. Once you’ve chosen your initial partner, connect them with a commercial realtor to secure a suitable location. Simultaneously, commence the build-out process. While the location is being prepared, focus on training your franchisee to meet your expectations for customer service and product knowledge.
Continue Offering Guidance
Upon the opening of your inaugural franchise location, ensure your availability to provide support and guidance. Despite a well-prepared grand opening, unexpected setbacks may arise. Be prepared to answer questions, address IT issues, and offer guidance. As the initial weeks and months unfold, continue training and refining your processes based on discovered gaps in the plan. Stay open to learning throughout the process as you navigate the intricacies of starting a franchise.
Don’t Bite Off More Than You Can Chew
The launch of the first franchise will provide valuable insights and excitement as your business expands to another location without additional personal investment. While it is tempting to acquire more franchises immediately after a successful launch, refrain from taking on too much at once. Ensure adequate support for your first franchise and home location.
Do It All With Franchise Creator
Franchising your business involves numerous steps, with a significant focus on finding the right franchise consultant equipped with the necessary experience and expertise.
As you progress to the stage of selecting a franchisee and establishing a new location, your energy will be directed towards supporting them during the initial stages of business launch. The more support you offer, the more successful the launch will be, facilitating the planning of subsequent franchises.
Regardless of your actions, maintain screening standards throughout the process to ensure that your partners are well-equipped to handle the challenges.
To delve deeper, reach out to the franchise consultants at Franchise Creator today and explore how we can assist you in building a robust franchise business.
Set Up an Expansion Strategy
You don’t want to begin expanding all over the place. Your best expansion strategy is to begin in your local market first and then to the adjacent city and outwards from there to adjacent states and on and on. You don’t want your new locations to encroach on your existing market, and you definitely don’t want your franchisees encroaching on one another. Look at a map and set up buffer zones between prospective markets. Then consider which neighborhoods you do and don’t want your franchise to be located in. This will ultimately determine how consumers perceive your brand. Setting minimum standards for the quality of shopping centers or strip mall locations is an important barrier to entry.
Hossein Kasmai Chief Executive Officer and Founder
Franchise Creator Leadership
Mr. Hossein Kasmai has an extensive experience in the field of franchising. Mr. Kasmai founded many franchise concepts of his own including Guard-A-Kid. Guard-A-Kid founded in 2005, quickly became the industry leader and a very successful franchise in the field of children and family safety.
In only a few months after its initial franchise offering, Guard-A-Kid grew to over 35 franchises and by 2010, only five years after its initial launch, Guard-A-Kid expanded to over 150 franchises in 11 countries worldwide. Mr. Kasmai’s new franchise concept has been ranked among the top 500 franchises for 6 years in a row and ranked in the top 10 new franchises in 2009.