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How to Franchise A Business: A Quick Guide
Apr 29, 2020
One in every 10 businesses
in the United States is a franchise. It's easy to see why: franchising your company can get you access to better talent, minimize growth costs, and lower risk. Starting a franchise is easy yet few people know how to franchise their business.
If you're interested in franchising a business and harnessing all of its amazing advantages, we've got you covered. In this article, we're going to take a look at how to franchise a business and the steps that you need to take.
Ready to find out more? Then please, keep reading.
Organize Your Business
Before you can figure out how to franchise your business, you need to delineate exactly what makes your business special. What is your business model and how will franchisees put it into action?
If you're wondering how to get organized, it's best to write down your company's business model and guidelines of how you do business. This will form the backbone of your franchises and educate franchisees in the way that you expect them to behave.
This information should be put into a manual that you will give to franchisees during their induction. You should also figure out ways that you will market your franchise: will you do this yourself or use franchise sales outsourcing?
Carry Out Market Research
When wondering how to franchise your company you should first figure out whether you should. Would your company be a success across the country or would it have stiff competition? Research key cities across the country and see if there is any room for your brand or if it would fail to capture an audience.
Understand What Being a Franchisor Involves
Being a franchisor is very different from running a business. You will no longer be running your business and doing your normal day-to-day duties. You'll need to support franchisees and fix any problems that they have: it's a very administration-heavy role.
Fill Out Paperwork
Next up, you need to file the necessary paperwork so that you can start franchising. You should get some legal help while you're filling in this paperwork.
The most crucial document that you'll need to fill in is a franchise disclosure document. This will be given to people interested in buying your franchise. Its layout is very specific and should not be attempted by someone who isn't used to creating legal documents.
You will also need to create an agreement for franchisees to sign and determine how much you're going to charge franchisees.
Build Your Brand
When franchising your business you mustn't dilute your brand. Make sure that as franchisees grow in number, they stay true to your original brand's culture and message.
How We Can Help You
If you'd like some help discovering how to franchise your business, we can help you! Our professionals can help you decide on the right strategy for franchising your small business and work out how franchisable it is. For more information, please get in contact with us!
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There's a lot to learn as a new franchisee, and in doing so you'll avoid common mistakes and pitfalls. Be one step ahead by exploring this helpful guide.
Ready to get started?
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