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How to Turn Your Business into a Franchise Brand in 7 Steps

Strategic Franchise Development • Jan 06, 2021

Are you looking to extend your company's success by growing it outward? Has your goal always been to franchise your business and build your legacy? If so, then you need to learn how to turn your business into a franchise brand.


Doing so can help you fulfill your dream and make as much money as possible. You can grow your company's family and extend to new markets for an exciting new chapter. However, you want to make sure you're going about it the right way.


See below for an in-depth guide on how to franchise your business and start to turn this into a reality.



1. Assess Your Situation

As great of an opportunity as franchising a business can be, it isn't the right move for every company. 


On paper, it seems like the right choice: grow your company and expand your brand. But there's more to it than that. When you franchise, you need to recruit new people in, train them in your ways, show them what your brand is all about, then send them off.


That can be a scary concept for some. Make sure your company's business model and goals are viable to be spread out this way. Be sure to hire a franchise sales consultant to help you with this entire process.


2. Configure an FDD

Should you find your business franchise-worthy and are ready to take the next step, it's time to create a franchise disclosure document (FDD, for short). 


This is a legally-binding document that you'll give out to anyone that's interested in buying a franchise from you. It provides them with information about yourself, the system you use, and what they'll need to agree with in order to move forward.


An FDD is critical for finding like-minded franchisees. It's given out in the pre-sale process to ensure that they see eye to eye with your thought process, the way you conduct business, and so forth. 


3. Build a Business Operations Manual

Say a potential franchisee comes along, reads your FDD, and decides that they're all-in on your company. The next step would be to learn about the inner workings of your business operations.


Make sure to create an in-depth business operations manual that you can hand out to all of your franchisees of the future. It should go very in depth about your company's processes, why they're done that way, and the best way to operate your business.

This plays a huge factor in making sure that your franchises are as close to the original as possible. 


For example, you might be surprised to learn that all Dunkin' Donuts are franchised. Still, any time that you step into a DD, you expect the same level of service, same great-tasting coffee, and so on. Dunkin's business operations manual helps ensure that's the case.


4. Build a Sales Strategy

This part should come relatively easy to you if you have a company successful enough to consider franchising. The sales strategy of your franchisees shouldn't deviate from your original sales strategy.


There might be some minor tweaks on what your target market looks like, where they can be found, and how you can direct them to your franchises. How can you teach your franchisees to generate enough interest?


Granted, some of this will be established on a franchisee by franchisee basis. But the main components of your sales strategy can be set and "filled out" by your franchisees as you continue to grow.


5. Register All Trademarks

Your brand is everything in franchising. Take a company like Mellow Mushroom for instance. No matter who owns and starts that particular franchise, their name, logo, and reputation remains the same.


In order to capture that for your brand—and make sure no one tries to copy it— you need to register for a trademark on all your properties.

You can do so by going to the U.S. Patent and Trademark Office's site. Do this as soon as possible to set things in motion, as it can take three or four months to process.


6. Register In All Applicable States

Every U.S. state has a certain protocol for selling franchises in their borders. Some require a franchise registration, while others require franchise filing methods. 


It's important that you read up on the unique laws that each state has before selling a franchise. 

Not doing so can land you in a world of hurt. You might face legal action, as well as penalties and fees for which your company will have to pay.


7. Set a Budget

Last but not least, it's time to set a budget. As more and more franchisees approach you, you'll want to set them up for success.

Give them a budget guide that they can use to establish their business. This can be things like budgeting for training their staff, creating excitement in thier community, and so on.


Part of the fun is that you'll be able to help your franchisees adjust their budgets in order to have success. Each franchise you sell will have different hurdles and opportunities for maximizing its budget.


Start Your Franchise Brand Today

Now that you've seen several essential steps for how to turn your current business into a franchise brand, be sure to consider them as you go about this process. 


Be sure to read this article for more help and information on how to franchise your restaurant and grow it into a nationwide safe haven of delicious food.


For more inquiries, please feel free to reach out via our contact us page and we will be happy to assist you further.

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