Franchise Development and How to Grow Your Empire in 2021

Are you ready to go into franchise development for your business?

Developing a franchise system for your business consists of both an exciting venture and no small feat. Yet, if you want your business to continue growing, you might want to consider turning it into a franchise.

But how do you go about franchising your business and growing your company's reach? Below, we'll go into everything you need to know about franchise ownership. 

Keep reading to learn more!

What Is a Franchise?

Before we talk about turning your business into a franchise, let's first define the franchise model.

Essentially, when you franchise your business, you sell the rights to open individual stores (otherwise known as "franchises") under the name of your company or brand. The people who purchase your franchise then sell your products and become part of your company's overall expansion.

They also represent your brand and receive a percentage of the sales they receive. 

For many businesses, participating in franchise development is a great deal. Company owners get to expand their businesses, make money off of those expansions and put the day-to-day management of the locations into the hands of different managers.

How Do You Know You're Ready for Franchise Development?

But how do you know when you're ready to start creating your franchise business plan?

As a business owner, the idea of owning a franchise might seem exciting, and it is. Yet, not everyone is ready to own a franchise brand. In order to minimize your risks, you should first make sure you have a thriving local business.

After all, succeeding locally constitutes a good litmus test. Will people love what you do enough to make it sustainable? Are you able to open two or more stores in your area and still have enough customers? If you have your own business that succeeds on a local level, there's a chance that people in other areas will like it, too.

If you don't know whether or not you're ready to franchise your business, we recommend first trying to open another branch of your location and seeing how that does. Should it succeed, you might be ready to start franchising your business.

Should you already have several booming stores in your area and believe there is enough demand for more, you might be ready to start selling franchises.

How Do You Start Your Franchise Development?

So, how do you move to franchise your business?

Getting your business into a franchise model takes some effort and planning. Yet, if running a franchise operation helps you grow, it might be the next step toward your goal of running an empire in your individual field. 

Below, we'll go into the different steps for franchising your business.

1. Make a Business Plan 

When you first started out, you likely created a business plan that outlined how your company operated. This detailed the overall structure of your organization and its objectives and helps investors get on board with your idea. 

Likewise, when you start to franchise your business, you need to develop a plan. Decide how you want your business to be organized and what guidelines you want your franchisees to follow. Those who buy into your franchise will appreciate the structure, as it will help them get their businesses up and running. 

It also helps you in the long-run since you will be able to more clearly communicate your expectations upfront.

2. Get Legal Help

As you start forming your franchise, you should hire an attorney to get you started. You need to fill out a Franchise Disclosure Document, and it helps to have an attorney for this stage in the process.

You should also seek your lawyer's advice when it comes to creating franchise purchase agreements, pricing, and other aspects pertaining to people legally buying into your franchise.

3. Consider Your Franchisees Carefully

As you first start out, you may experience the temptation to sell a franchise to the first franchisee who comes knocking at your door. Yet, you shouldn't do this, even if your franchisee meets all of your basic requirements.

Instead, remember that this person, if given the opportunity to buy your franchise, will represent your brand. As such, there needs to be an excellent fit. They need to believe wholeheartedly in what you do and know how to represent your brand well. They should have a thorough understanding of your company and be passionate about representing you.

You should also look into their background and see if they have the right credentials to run a business for you. 

Make sure you establish an interview process and know your deal-breakers before you speak to your first potential franchisee. In the same way, you should have an idea of the ideal franchisee.

4. Consider Where You Want to Grow

Just because you know can set up a franchise that goes all over the world doesn't mean you should do so right away. It still is important to know where your business might be the most successful.

For instance, if you know that your clothing store does well in southwestern Texas, you might consider trying to expand to different areas of Texas first before you try your luck in Chicago or China.

To discover where you would be the most successful, do some market research. Is there a viable market for your services and products in that area? Who would your competitors be, and how does your company do your work differently?

If you think your company would do well in a certain area, look for franchisees willing to open in that location.

Are You Ready to Start a Franchise?

So are you ready to participate in franchise development?

When you start a franchise, it's important to make sure you know how to take the right steps for your business. You should know how franchises work, determine whether or not your business is ready, and then take the steps listed above to get your franchise started.



Ready to develop your franchise? Contact us today to get professional help!