Six Steps to Franchising Your Business

If you have a successful small business and you are thinking of expanding, but you are not sure how to do it or if it is worth risking your funds, consider the possibility of franchising. It is a unique way to grow and develop your business very fast in a way that will allow you to share the workload and financial costs. However, it is not as easy as it may sound, but the effort can certainly pay off handsomely. Here are some tips you should consider if you are thinking about franchising your business.

Six Steps to Franchising Your Business

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  • Focus on the Details

You must know your business in and out in order to franchise it properly. This means you will have to focus on every little detail and standardize it in order to make life easier for you and your future partners and to secure that your brand is used properly. If you look at some of the successful franchises in Australia like Golden Chain Motels, Mister Minit and Kwik Copy, as well as globally known brands like McDonald`s, Pizza Hut or Hampton Hotel, you will notice that they not only provide the same services or products everywhere, but they offer their customers a distinctive look and feel. Surely there are some aspects of your business where you play by ear or you regulate them through a verbal agreement with your employees. This is not going to cut it if you want to franchise – everything must be laid out in detail in order for you to have a chance to franchise successfully.

  • Go Legal an Seek Advice

There are many legal issues in franchising your business where you will need the help of an expert. Actually, it would be a good idea to hire a franchising consultant right from the start. However, this doesn’t mean you can relax and just wait for the money to roll in. A consultant will help you to make sense out of convoluted legal necessities and various issues, to avoid common mistakes and to protect yourself legally. You or someone who knows your business good enough to run it should be engaged in every step of the process. As far as legal issues go, the International Franchise Association is a great resource where you can familiarize yourself with the legal aspect of franchising, which is advisable even if you have hired an expert consultant. This association publishes reports as well, including An Introduction to the Law of Franchising. If you manage to read and understand 450 pages of the revised second edition of the Introduction, you will be much closer to setting up a successful franchise.

  • Plan the Growth

It is necessary to examine how you can franchise your business both geographically and financially. You need to have a clear idea of where you can and want to expand, as well as the of the scope of the enterprise you are about to embark. Don`t get carried away with big plans straight away and try to be realistic in your predictions.

  • Examine Your Franchises

The mere fact that someone want to use your brand should be just the beginning. One of the most common mistakes of business owners it to start franchising by selling to anyone who is willing to buy the franchise, which is a certain recipe for a disaster. The people who open a franchise with the name of your company will be representing you and your brand. This kind of relationship is unique and you should approach every interested party with great caution and eye wide opened. You will come across many dreamers with big plans, but very little or no substance. Be wary of them, as they may easily take your brand down with them and it may take year for you to re-establish your credibility with the customers.

  • Think Carefully About the Restrictions

You will have to give franchisees very specific restrictions on many aspects of their daily operations, but be sure to leave them some room to breathe. This can prove to be a bit tricky, as too much freedom will expose you to many risks, and too much restrictions will narrow the pool of potential franchisees. This is a crucial part of franchising and it must be done thoroughly and properly in order for your business to grow unhindered.

  • Give Support to Franchisees

At some point you will step back from daily operations, but you should never be too far. Every franchisee will meet a number of unique challenges and they will require your help in overcoming them. Get to know your franchisees well and make sure someone is there to help them and offer some advice when the situation calls for it.

About Kelly Rogers

Kelly Rogers is an Aussie girl who works as a freelance business consultant for a number of Australian companies. She is an expert in franchising, marketing, and customer services.