FranChoice

Posted by on Feb 4, 2015 in Blog | Comments Off

If you have been seeking a route to rapidly achieve rapid growth in your business, then maybe it’s time you considered franchising it. However you should bear in mind this is not a surefire way to instant success but rather will require lots of hard work and determination to reach the heights of success you desire.

It is the dream of every business to have their brand become a household name with numerous branches globally and that is why most people still attempt to franchise their business.

So what exactly constitutes a franchise business?

A franchise can be defined as business where its owners have sold their model name and business logo rights to third parties who in turn independently run retail outlets across the globe. Franchise businesses are very common nowadays and you cannot miss one every few blocks. Examples include UPS and McDonald’s.

Steps in franchising a business include:

Evaluate the Readiness of the Business

The suitability of a business to be franchised will depend on a variety of factors which surpass the profitability and sales of such a business and they include the following;

Your franchise concept-what will you do differently that other providers of the same business are not doing? The answer to this question is what will appeal to customers as well as the potential franchisees who will buy the idea.

The financial base- before attempting a shot at franchising a business, you must have a solid financial base as well as having similar branches of your business that are profitably running.

Do thorough background checks- Be sure to do thorough market research to ensure that your product is in high demand beyond your local area. Your franchise business should aim to bridge the existing gap.

Bracing yourself for change- your role will shift from being a business owner to being a franchise seller and manager. Additionally you will have to relinquish some of the control over how some of your concept is executed. Therefore you must be ready for such changes.

Legal Requirements

This is basically learning about the laws governing franchising business and adhering to them. You don’t want to find yourself on the wrong arm of the law right? Register your franchise and fulfill all the legal requirements and you will be good to go.

How to run your model

As you embark on fulfilling all the legal requirements, you should draft a copy on how exactly you intend to go about your business. Key areas to consider include terms of agreement, royalty and fee percentage, localities for franchises, marketing franchises etc.

Paper work

After compiling the terms of operation, of course with the help of a lawyer, you should complete other required legal paper work necessary for registration and then submit to the relevant authorities.

Hire key staff members

You cannot solely run franchises therefore you need to hire key staff specialized in franchises to help market, sell and run franchises effectively.

After adhering to the above steps, you can now proceed to selling franchising and supporting them and voila! You have franchised your business.