So you’d like to franchise your business but don’t know where to start? Here are a few quick tips to help you on your way:
The International Franchise Association is probably the first place you want to start. They have members which include franchisors, franchisees and suppliers from many different industries. They have a very good website which contains a variety of resources for those who want to get started such as, industry articles, information packages, and a forum where you can ask questions, get answers and find advice from their members. As soon as you feel comfortable with the basics, there are some specific areas to pay attention to.
Guide lines and Procedures : To replicate the success of your business by franchising, you need to create a complete set of guide lines and procedures for your franchisees to follow. Along with a training program to teach all aspects of the franchise to your franchisee and a marketing plan to help them start their business. Make sure all the guide lines are as detailed and as specific as possible. The reason you want to do all this is because your franchisee(s) will be representing you and your franchise organization.
Finances: In order for franchisees to make a educated decision on whether or not to join your franchise organization, they need a clear picture of where your business stands. They can do this by seeing your audited financial statements. There are many skilled accountants to help you prepare these documents and give you advise on how to set up your business for the best results.
Legal: All franchisors are legally bound to provide a Franchise Disclosure Documents to any potential franchisees before the sign an agreement. This document provides a complete history about your franchise, mentions any other companies associated with you, or if there have been any lawsuits or bankruptcies. It also must be presented to the franchisee at least 14 days in advance to signing. These documents can get very confusing, so you will want to hire a qualified franchise lawyer to make sure the contracts are correct and contain all information necessary to meet all franchise guide lines.
Attitude: One of the key elements that can keep you on track as a franchisor is maintaining a positive, engaged attitude so that you can continue to grow your business and help your franchisee become a success as well. You will need to be able to keep the lines of communication open between yourself and your franchisee, and exercise tact and diplomacy when telling them how you would like your franchise business to be run.
My Franchise Law is a website dedicated to connecting those who are existing franchisors, starting a franchise, or buying into a franchise with experienced and qualified franchise lawyers.