How do I franchise my business?
This is the question we hear a lot, and most likely why you are on our site right now. You are wondering, “How do I franchise my business”? The majority of our site is really dedicated to showing you how to franchise your business, but we wanted to lay out, on one page, a simple answer to this question.
So, in short form, here is the answer to the question “how do I franchise my business”?
Become an expert at your business.
If you are an owner operator, you likely often run your business reactively; when issues arise you react to them. Your current business is a sum total of those reactions. When it comes time to franchise your business, however, you have to proactively understand how your business runs. You have to know what situations a business owner in your field might encounter, and how to handle them. The first step when wondering how to franchise your business is to become an expert in your business.
When you ask, “how do I franchise my business”, what you are really asking is “how do I teach other people what I know to be successful in the space that I am in”? The simple answer to that is document everything. You should begin paying attention to what you and your employees do on an hourly, daily, weekly, and monthly basis and documenting every step. Don’t worry about the format, for now, just write it down.
Do a franchise feasibility study
You may wonder why a franchise feasibility study is so far down the “how do I franchise my business” list. After all, shouldn’t you determine if you should franchise your business before you start working on how to franchise your business? The short answer is “no”, for two reasons. First, every business owner will benefit from steps 1 and 2. Secondly, you can’t do a franchise feasibility study without being an expert at your own business and having everything documented. For more on how to do a feasibility study check out our article on franchise feasibility studies.
Bring in the Experts
When you wonder, “how do I fix my car”, you consult with a mechanical expert, right? When you are wondering, “how do I franchise my business”, you should consult with a franchising expert! Using a franchising consultant firm like Franchise Beacon will help guide you through the steps it takes to franchise your business. A good franchise consultant should be able to save you time, money, and frustration through every step of franchising your business. Additionally, the right franchise consultant will make sure that you are preparing for a funding, acquisition, or some other liquidity event or exit strategy from the inception of your program, and insure that you lay the groundwork for factors such as compliance and advertising that after plague franchisors as they begin to grow.
Prepare your Documents
There are two key documents that you need to prepare before you are ready to franchise your business. The First is a Franchise Disclosure Document, which is a federally regulated document that explains the franchise, and the Operations Manual, which is the day-to-day instructions to the franchisee on how to operate the franchise. These two documents need to be prepared before you offer a franchise for sale.
Prepare your Initial Training
Initial Training is where you impart your knowledge to the new franchisee. You must have a complete training program prepared before you begin offering franchises, as the outline becomes part of your Franchise Agreement.
Create a Franchise Marketing Plan and Sales Process
Now that you have a franchise, you are ready to sell franchises! You do this by using traditional and non-traditional means of attracting potential franchisees, and then engaging with these prospects in an effective way to move through the mutual evaluation process quickly and efficiently.
You are now a franchisor!
Congratulations! You have now created and documented a franchise-able business, marketed it, and sold your first franchise. You have now answered the question “how do I franchise my business”.
Of course, this article only provides a very high-level overview of the steps required to franchise a business. Feel free to continue exploring our site to learn more and, ff you would like to learn more about how Franchise Beacon can help you franchise your business, contact us!