The McDonalds operations manual has plenty to teach anyone going into franchising about how to become a big success.

There is no denying that the McDonalds operations manual is an example of how to set up a franchising dynasty that can dominate an industry.  When it comes to franchise operations, there may be no other interventional franchising empire that has achieved such a high level of efficiency and finding ways to make operations from Boston to Hong Kong run like a well oiled machine.

The image of the company that customers have as a happy place where they get food they like is one that is crafted from the McDonalds operations manual on up.  This image doesn’t just fall out of the sky.  It comes from discipline all levels of the operation. It take a careful mix of discipline and tender loving care from the franchising company mother ship to keep thousands of McDonald’s restaurants in line but happy and working hard at the same time.

That discipline is laid into the McDonalds operations manual so that franchise owners know well how to create an army of hard workers who are also happy workers.  It is no secret that people working at a McDonalds make low wages and that there is high turnover because of that.  The McDonalds operations manual lays out a scheme to keep those low paying positions filled with good people who serve customers in a way that brings them back for more McDonald’s food over and over and over again.

Its all about offering customers consistency

A fact of life that most people accept the same way they accept that the sun comes up and mosquitoes bite in the summer is that when you go to a McDonalds, it will always be the same experience. That too is a corporate ethic that McDonalds made a cornerstone of their operation when they set out to franchise the company. That consistency is something that the McDonalds operations manual stipulated down to the color of the bathroom tissue and the type of light bulbs to put in.

It doesn’t matter whether you go in a McDonalds in Florida, Idaho, Canada or Saudi Arabia, you will see a restaurant that is identical to every other McDonalds in the world in almost every way.  There are adjustments made for culture in their international stores but the McDonalds operations manual puts a huge priority on making sure that when customers come to McDonalds, they get exactly what they are expecting in terms of good food, a clean environment and helpful employees.

That consistency is a huge reason why the McDonalds operations manual has generated such success for the chain. Truck drivers know that if they want a good cup of coffee, go to McDonalds.  Parents know that the food they get for their kiddos at McDonalds will satisfy the little tykes and that it is fundamentally a worthwhile meal for the buck, they can trust McDonalds.

That is why for millions of customers “going to McDonalds” is as much a part of life as going to see Grandma or the weekly trip to the grocery store.  And that is why it is a good move for any hopeful fast food franchising chain to study the McDonalds operations manual to learn the secrets of amazing success that can be found there.

 

 

 

To franchise your company is a smart way to jump start a small business in a hurry.

Many smart entrepreneurs find that to franchise your company is a great way to launch a successful small business and cut out much of the fear and trembling that goes into building a business from the ground up. There is no getting around the fact that building a small business is a tough road to go. It is a worthwhile struggle because you are your own boss and when you get your store or other kind of small business up and on its feet, its all yours and you don’t have the pain in the neck of bosses, supervisors and someone else getting all the profits.

The fast track to getting a small business up and running is to franchise your company by buying into a lucrative franchise from a very successful and prosperous national chain.  By seeking that franchise agreement with a big and famous power broker company, you naturally inherit all of the business smarts that they worked their tails off to earn the hard way.  You also inherit a massive customer base of rabid fans of that company who will flock to your franchise because they like the stuff that they buy with that brand name associated with it.

To franchise your company isn’t cheap.

If you do think that the idea to franchise your company to buy into success is a great route to go, your first step is to learn all you can. This will not be tough because companies that have taken over the world selling franchises are excited to flood you with more franchise information than you can shake a stick at. But instead of shaking a stick at it, read every page of it.  It can be an eye opening experience.

One of the wake-up calls that will hit you early is that it isn’t cheap to franchise your company through a natural chain because there are franchise fees, royalties and you bear many of the start up costs just like you would if you started a company from scratch.  Still in all, to franchise a company and be able to hang out that shingle with that famous name on your door is a ticket to almost instant success. You are going to have to work hard to make it all work.  But if you work hard and run your small business franchise like a well oiled machine, the results will make you smile in the form of a bulging bank account and a bulging chest full of the pride of a very successful small business owner.

A sample franchise contract must be sent to the franchise applicant by franchise law but there is much more you can do with it with a little creative thinking.

A copy of a sample franchise contract is required to be sent to the hopeful franchise owner shortly before D-Day when you and that starry eyed future franchise magnate sit down to sign the formal franchise agreement template document. When you get ready to roll out hundreds or more franchise ownerships, it is easy to have a standard sample franchise contract on the shelf that you ship out just to punch the clock and live up to that quirk of the franchise rules.

There are places you can download a sample franchise contract template that is generic.  It is easy to consider simply sending that to the franchise owner and let it go at that.  Of course, if do that, when the franchise owner sits down to sign the actual franchise agreement form that will turn into a long term franchise relationship with you, he or she may find some surprises.  That is a situation that you should avoid at all costs because surprises when you are ready to seal the deal and collect those fat franchising fees can put big storm clouds over the relationship.

It takes more work but make it a part of your franchising program to send to each franchise applicant a sample franchise contract that is exactly what he or she will sign not that many days later. Much depends on how customized you make your sample franchise agreement for each franchise applicant.  The more you bend over backward to make each franchise relationship unique and a perfect fit for that particular market and franchise owner, the more success and big bucks you can expect from that franchise sale.

The sample franchise contract is a great way to stimulate conversation and relationship with your franchise partners.

There is no getting around that you have to send that sample franchise contract because that is spelled out in franchise law in bold letters. So while you are doing your duty as a good franchise operator and sending along that sample franchise contract, why not get some good from this step along the path to adding a new franchise to your chain?

Along with the legal hoops you jump through to take that raw franchise owner recruit from application to closing the deal, there is an educational path to take each new franchise owner through as well. Even if the franchise applicant is an old pro at buying franchises, if this is the first franchise they have bought from you, they need to learn the ropes. The sample franchise contract is a great step to stimulate questions and to get a dialog going with the franchise applicant.

Along with the sample franchise contract, you can send support material that encourages the new franchise owner to ask questions and arrange meetings to clear up any hazy areas about that document or any other quirks of the franchise relationship. A smart franchise buyer will turn into a much better franchise owner who will deliver the goods when it is time to roll up his sleeves and turn that franchise into a huge money making operation. You can help that new member of your team become that productive by using the sample franchise contract step of the process to build that partnership into something that will stand the test of time.

The franchise licensing agreement is a legal document that puts the marriage of the franchise partners in motion but that doesn’t mean it has to be harsh.

It is the nature of the beast that the franchise licensing agreement must live up to expectations as a major watershed document in the franchise development process. By the time that hopeful franchise owner sits down at the table to sign that franchise licensing agreement, a great deal of water has gone under the bridge.  There will be meetings, phone calls, background checks by the franchise company and by the franchise applicant and exchange of franchise disclosure documents big enough to choke a horse.

As the franchising company, the responsibility for authoring the franchise licensing agreement falls to you. Smart companies that build a franchise empire do not farm out this chore. Put some thought and care into how that franchise licensing agreement looks, smells and feels because it is important that is works on several levels.

The obvious level that the franchise agreement must work is as a legally binding document that cements the relationship between you and that new franchise owner.  By legally binding, we are not kidding because this document will have to stand up and do its stuff if push comes to shove in a legal way. So you do have to put some teeth into the franchise licensing agreement so that it protects you.  But keep in mind that it takes two to tango when you are building a franchise relationship and work with representatives from the other end of the table so both you and the franchise owner feel that the franchise licensing agreement is fair to everyone making the deal.

Let the franchise licensing agreement kick off a productive long term business relationship.

Keep in mind also that when you get up from signing that franchise licensing agreement with a new franchise owner, you will have started a relationship that should and could result in great wealth for everyone. You want that franchise owner to charge out of that room with moxie and enthusiasm to conquer his or her market in the name of your company.

There is no reason to make the language of the franchise licensing agreement hostile, stale or unpleasant.  Keep in mind that you are in the position of selling that franchise to the franchise owner so that makes him or her a customer.  Never miss a chance to build that customer relationship.  By making the franchise licensing agreement an upbeat and encouraging document, you are even using a boring old legal document like the franchise licensing agreement part of your bold marketing plan that will result in an explosive growth in your franchising empire. That is smart use of the franchise licensing agreement to be sure.

 

 

The franchise agreement document is a crucial step in buying a franchise so know it inside out when you prepare to sign up to own your own franchise.

It is crucial that you understand the franchise agreement document well in advance of that big day when you sign the formal document to make your franchise purchase legal. There is an old saying that knowledge is power and that old saying applies in spades when it comes to getting all of the franchise information you can lay your hands up before you seal the deal.

Sealing the deal happens when you sign that franchise agreement document because once both franchisor and franchisee put their autographs on it, that contract becomes as legally binding than a marriage contract. In fact, most marriage contracts are easier to get out of than a franchise agreement document and that is something to sit on the back porch and think about before you move forward.

The good news is that the way the franchising process is set up, the franchising company is expected and required to make sure you are up to your nose in explanations and chances to review all of the franchise paperwork including the franchise agreement document. Part of that preparation will be the delivery of a fully customized franchise agreement sample that will be down to the last detail a replica of the franchise agreement document you will sign a week or so later. This sample is required to be delivered to you in plenty of time for you to read it over a few dozen times, have your high priced lawyers check it out and ask questions and dicker about it before you have to put your name on the final draft and start owning that franchise you want.

Resources for learning about the franchise agreement document are abundant.

You don’t have to wait for the sample franchise agreement document to come flying into your mailbox to start digging deep into the insider secrets about the company who owns your franchises and what life will be like when you buy that franchise and start doing business as a small business owner.  One big document that delivers more detail than you may have thought possible is the franchise disclosure document.  Again, the federal overlords in the FCC require that the franchising company spill their guts in the franchise disclosure document about every dirty detail about the company and what will go on as the franchise development process goes forward.

You can also find plenty of examples of franchise agreement documents online so that you can tap into templates that will tell you what a franchise agreement document will look like and what kinds of things you can expect to agree to when you take out your pen and sign that document. The actual franchise agreement document will be unique and customized to the business that offers it, the market niche that they are in and perhaps even to the specific arrangements between you and the franchising company.  But because you took the time to get to know the franchise agreement document long before you had to face down the legally binding contract and conquer it, you will come through the process with flying colors.