How To Make The Most Profitable Franchise Business Plan

You’ve started your own company and you’ve been running it for a significant amount of time. How To Make The Most Profitable Franchise Business PlanEverything’s going great, money’s coming in, but could you possibly accomplish more? Maybe it’s time for you to take the next step: business expansion. And what could be more obvious than creating a business franchise?

You can be sure that the road is going to be long and winding, and if not full of dangers, before you become the next Ray Kroc, Fred DeLuca, or the rest of the most successful franchises in the world. So, this would be the best time to take a look at what you have so far and see if franchising would be the best direction for your growth.

Considering If Franchising Is Good For Your Business

  • Are there other franchises like yours? Have you looked into them? Aside from scoping out the possible competition, it’s also advisable to check if other companies in the same industry have attempted to expand by franchising and if they’ve been successful at it. A few hot tips wouldn’t hurt. Also, studying how they started and went through with their plans would give you an idea of what to expect in the transition.
  • Is your current business model successful? Nobody is in business to lose money. Potential franchisees would be looking to purchase a franchise that would earn them profits. Look at your history and see if you’ve been consistently earning well enough after costs and fees. Numbers matter and this is how you can sell your franchise to potential buyers.
  • Can your business model be replicated? Most of the time, the characteristics of the original business are what sets it apart from others in the same industry and is usually the key to their success. You need to remember though that your franchise would be managed by a different group of individuals in a different market. To establish consistency between the original and the franchise, you should be able to come up with a system that would set clear guidelines that others could easily follow and maintain.
  • Do you have the money to grow? You, as the franchisor, should have sufficient capital to cover the costs of expansion. You should also be able to keep things afloat until the franchise has been firmly established and is successfully running.
  • Have you considered how big you want to grow and would it benefit you? Check if you have the advantage of lowering your productions costs as you add more franchises. Also, do you want the work of establishing a franchise plan and seeing it become reality? Only proceed if you have the drive and financial incentives to do so.
  • Is there a large pool of potential franchisees? One sign of telling you that it’s time to start expanding is if other people have already approached you and offered to purchase a franchise.

If you’ve answered yes to all of these questions then you’re well on your way to starting your own franchise. Here are a few pointers that’ll help you on your way to make the most profit:

  1. Organize your business model down to the smallest details – At this point, you should’ve already figured out the wheels and cogs that make your current system work seamlessly. From marketing your product to the kind of printer toner that you use, don’t be afraid to get into the nitty-gritty of how you run your business to make sure that the franchise would be able to duplicate the standards you’ve established.
  2. Find the best locations – It makes sense to start where you already have strong brand recognition and customer base, but don’t stop there. Consider the feasibility of opening in further locations. If you’re up for a challenge, you can even go international.
  3. Choose the right franchisee – Don’t think twice about interviewing potential candidates. Teamwork is essential in making the franchise system work, and you’ll want to know if you’ll be working with people thinking on the same wavelength.
  4. Be ready to support your franchisees – This means you must be equipped to train their staff and help them with marketing their product. Plus, you should be available in the future to assist with every opportunity and challenge that may arise.
  5. Protect your brand – After giving your franchisees all the support they need, there will come a time when you’ll need to step back and trust them to take your business in the right direction independently. However, don’t forget to keep them within their bounds. They might own the new business franchise, but you still own the brand, along with the expectations that come with it.
  6. Seek legal help and other expert advice – You’ll need experienced individuals to ensure that all the i’s have been dotted, and the t’s crossed when it comes to your franchising contract. It’s also best to acquire the services of companies like franchiseknowhow.com for sale strategies and help when it comes to taking a second look at your business plan.
About Sarah Morris

Sarah Morris is writer and blogger at PenWarriors.