When the right business concept is franchised effectively, it can get you ahead of the competitive curve. Lots of business owners have the goal of seeing their business brand become well-known with a few franchises in several states or areas.
To do this, a successful franchisor must be thoughtful and know whether or not franchising will work for their brand. It is a matter of knowing your business and yourself. Here are a few steps that you can take to achieve your franchising goals:
Get Your Ducks in a Row
Consider the inner workings of your business. Future franchises will need detailed procedures and step by step instructions on how to get their business started and succeed. Create a manual with all your procedures, protocols and systems operations manual to give franchisees a quick way to reference policies and best practices and create an approval process so that you sign off on major decisions.
Get an Attorney
To legally sell franchises in the USA, your business must complete a Franchise Disclosure Document then successfully register with the Federal Trade Commission. Find and hire an experienced franchise consultant or franchise attorney to advise and assist with this process. They can make sure you’re doing every required step correctly.
Additionally, The International Franchise Association is a helpful resource when it comes to the legal issues surrounding franchising. The IFA compiles information on franchises, provides resources and aid to businesses looking to become franchises and lobbies for legislation favorable to franchises.
Just like choosing the right person to spend the rest of your life with, you should be extremely picky when it comes to choosing franchisees. Screen your franchisees: be sure to have a system in place to make sure these people will take your company in the right direction in a new market.
Lots of people have the capital, but are they the best fit? Do they have the background and experience needed to run a business effectively? Remember, this person will be representing you; protecting and growing your brand. They need to be a good fit.
Geography: Choose The Right Locations
Brainstorm on the locations that make more sense to your business and the areas where you have brand recognition. It would be wise to keep your first few locations close to home, but far enough away that it doesn’t decrease sales at your initial location. With this in mind, you can now manage the logistics easily. You’ll want to visit these locations, so it would be wise to find locations that have easy access to an airport.
Protect and Build your Brand
Your brand is who you are, your beliefs, culture and what keeps your customers coming over and over again. Without a doubt, your most valuable asset is your brand; protect it at all costs. But when you franchise, you give people the right and ability to represent who you are – your brand. It is hands down one of the biggest risks of franchising.
What can you do to protect yourself? Establish clear guidelines on the use of all brand assets and ensure that the message is consistent throughout the organization. Remember, no detail is too small. Any use of your branding must be done with prior approval. It might seem like you are micromanaging and overbearing, but pay attention to images, videos and big one – social media in a regular and detailed fashion.
Find a Coach or a Mentor
People are always willing to give advice — you just need to seek them out.
Have a Growth Plan
The experts recommend growing at the rate natural to your business. Consider the ideal growth plan: be steady and strategic. Would it make sense to expand on an international level? Or should you stick to a statewide plan?
Support your Franchises
You’ve put in a lot of work to get to this point, support is now key to ensuring that chains succeed. As the franchisor, as you begin to remove yourself from the daily business of the franchises, you should spend extra time getting to know the franchisees. Be in regular communication with your franchisees.
As best as you can, encourage them by celebrating milestones and triumphs. Set up training programs and other initiatives to create quality control. Go the extra mile, share helpful articles and tips with them so they can grow. Lastly, set up a franchise network so that they can communicate with each other as well.
Contact The Powell Group at (806)-239-0804 or click here to visit our website and have one of our professionals assist you along the road to Franchising. We will provide you with the assistance you need.