How To Franchise: Meaning and Method
A successful business with a unique, easily replicable model is the perfect business to franchise, meaning that it can be expanded regionally or even nationally without overtaxing its owner. If you own such a business and have been toying with the idea of franchising it, you should read on. What you learn below will give you some insight into the process.
Franchising your business entails drawing up a license that allows other parties access to your business knowledge, model and trademarks. By granting these parties a franchise, you essentially allow them to provide customers with goods or services under the name of your business. This might worry you somewhat if you do not want to cede control over your business reputation to relative strangers.
Fortunately, though, franchising is not an endeavor that you go into completely blind. If you follow the right steps, you can maximize your chances of creating a successful franchise, meaning you will have much less to worry about than you imagine. As a franchisor, you would have the primary say over who you sold the franchise to and the circumstances under which your franchisees could operate the license. You would be able to vet potential franchisees to see that they met your expectations.
Heading 2: Turning Your Business into a Franchise: Meaning and Method
One of the keys to successful franchising involves starting to think like a franchisor, even before you set into motion the process that will make you one. You must be able to derive from your business experience a model that can be replicated by those who purchase the franchise, meaning you have to be able to explain to your franchisees exactly how your business works and why it works that way. You also have to set down detailed instructions for them to follow.
This is easier said than done. Most business owners are so immersed in their businesses that they cannot describe them in objective terms. They may have a hard time setting out in precise detail all the actions entailed in running their businesses. Many of them are likely to describe their most brilliant business decisions as intuitive decisions. You are likely to find yourself in this situation. If that is the case, you will likely need some time to orient yourself to this new way of thinking about your business.
It is an involving process turning your business into a franchise, meaning that at some point you will have to consult a professional for advice and guidance and to look for franchising resources. One such professional is a franchise consultant. Another one is a franchise lawyer. Both have training and experience specific to franchising and can save you much heartache. As for resources, you should turn to the International Franchise Association for useful information on the legalities of the process and for guidance.