How to franchise my business?
If you are interested to find out how to franchise your business there are some key things you need to consider first including;
Is your business franchiseable?
Firstly how long have you been in business for? Is the business profitable? Is the business transferrable and that you can train others to do exactly what do you and are other geographic areas going to give the same or similar prospects/customers for a new operation? Another factor you need to consider is do you have time or staff that can help you put together the franchise and then support incoming franchisees ( the people that invest in your franchise ) so that they are successful?
If you can answer yes to all of the above then your business may well have good prospects to franchise successfully.
What do I need to do to franchise my business?
Once you have determined above you need to document all your business processes. Effectively what you are creating is a very detailed handbook on exactly what a franchisee will need to do to set-up and operate the business, this is called a franchise operating manual. In addition to this you will also need other documentation including;
- Franchise agreement, deposit & confidentiality agreements & intellectual property protection
- Business plan for your business ( Franchisor ) and your Franchisees including profit & loss & cash flow forecasts based on actual figures for the min first 3 years
- Franchise operating manual ( as above )
- Franchise prospectus
- Franchise marketing, advertising & recruitment strategy
The role of franchise consultants
The above can be carried our internally using franchise lawyers but franchise consultants with experience will be a sigficant help as they will have the contacts and more importantly the experience of putting all of this together and successfully recruiting franchisees for your business.