How to Franchise Your Business
Franchising is a business model that allows successful business owners to leverage their existing business assets and know-how to expand their business and brand. Franchising your business means establishing the legal infrastructure, development strategy and plan to legally and effectively sell franchises to third party franchisee partners. Your franchisees will invest their capital, managerial efforts and time in expanding your business and brand by establishing their own franchised locations that will duplicate the systems that you have established and utilized in making your business a success.
To franchise your business you must establish a legal infrastructure and platform that complies with federal and state franchise laws and allows you to legally offer and sell franchises throughout the United States. This legal platform is comprised of a Franchise Disclosure Document (FDD) that contains legally mandated disclosures, franchise agreements and information about your newly established franchise offering, franchise system and the legal relationship that will exist between you and your future franchisee partners. Franchising your business also requires the establishment of a franchising strategy and plan that differentiates your soon to be launched franchise system from competitors and is designed to scale-up and grow.
When you franchise your business some of the franchise goals that you will be focused on, include:
- Goal 1: Developing and launching a multi-state Franchise Disclosure Document that will legally protect you and allow you to offer and sell franchises in multiple states.
- Goal 2: Developing a franchising strategy and plan that is reflected in your Franchise Disclosure Document and that strategically and realistically positions your new franchise system for franchise sales and growth.
- Goal 3: Protecting your trademarks and intellectual property through trademark registrations and confidentiality agreements.
- Goal 4: Develop a franchisee operations manual that will be provided to future franchisees and inform you franchisees about your business, your methods of operations, the systems that you have created and rely on and what you expect from them as future franchisee partners.
- Goal 5: Developing and maintaining a franchise compliance process that includes registering your Franchise Disclosure Document with franchise registration states like New York, California, Illinois, Virginia, Maryland and other registration states that are strategic to your expansion plans.
- Goal 6: Successfully launching your franchise system with the right advice and guidance focused on a sales strategy that is grounded in a realistic budget and one that incorporates a multi-sales strategy approach focused on organic sales, broker generated sales and web driven sales. At all costs avoid the franchising vultures.
So, the technical answer of "how to franchise your business" is that you:
- Create a franchise disclosure document that complies with federal and state franchise laws
- Create a franchisee operations manual that educates and informs your franchisees
- Establish a franchise compliance process that is focused on obtaining registration of your franchise disclosure document in the franchise registration states, and;
- Launching your newly established franchise system with a realistic plan to achieve franchise sales.
Now that you know the technical answer, it is also important to know and understand that to successfully franchise your business the franchising process must represent the honest and organic expansion of your business. The process must reflect the unique characteristics of your business and your goals. Your franchise system must be built on a rock solid foundation that reflects the very best practices in the franchising industry and one that, from the very start, is strategically focused on achieving attainable growth and scalability.
There are no shortcuts, but when done correctly franchising represents a very achievable and worthwhile goal in the continued expansion and growth of your business.
Do you want to franchise your business? Are you looking for a team to work with you in successfully developing and launching your franchise system?
If you are we would be glad to talk with you, learn more about your business and see if franchising may be the right fit. Contact us or give us a call at (800) 976-4905 or learn more about our Franchise Launch Program.