How to Create a Successful Franchise
When thinking of a franchise the first name that comes to mind is McDonald's. A franchise is an agreement through which a franchisee pays an initial fee and ongoing royalties to a franchiser and in return gets to use the franchiser's trademark and has access to the franchiser's system of doing business to sell franchised products or services. From the viewpoint of a franchisee, it's a hybrid between owning your own business and working for somebody else.
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Instructions
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Ascertain that your business is able to be franchised. Some things need to be considered before a business can be franchised. Is the business profitable? Is the idea unique or does it have the ability to cater to a specific niche? Does the business have established credibility? Can the business operations can be replicated on an individual unit level? Will all the individual units be sustainable/profitable? Are there guidelines, policies or systems in place? What will be the cost of franchising for the franchiser and the franchisee? What will be the time frame involved? Will franchising be profitable for your particular business model?
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Develop a franchising model. This works for already franchised entities and for businesses that are first-time franchisers. Your model should look at the following factors: financing, promotional materials, location mapping, trainings for employees, manuals for ensuring similar standards across units, franchise agreements, recruitment plans for employees and an expansion plan.
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Train a franchise recruitment training team. It is crucial to have a trained team that can transfer knowledge of your particular business to the recruited franchisee[s]. You may want to hire professional help for this step.
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Prepare required documentation such as agreements, operation manuals, training manuals and system review templates.
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Tips & Warnings
It is the responsibility of the franchiser to ensure that the franchisees are maintaining consistent quality of the product and/or services.
