Winning Strategies for Franchising Your Business
Are you interested in franchising your business? Have you already franchised? Do you want to learn more about how to build, scale, and grow a winning franchise system? In our Ultimate Guide to Franchising Your Business we teach you everything you need to know about how to franchise your business. In our Winning Strategies for Franchising Your Business series, we provide you with the inside track for building, scaling, and growing a winning franchise system.
If you’re a seasoned business owner with a strong track record of success, franchising might seem like the natural next step for growing and scaling your company.
As a proven business model, franchising is both a legal and business framework focused on expansion, unit-level economics and creating new opportunities. It is also a highly regulated and legally-driven industry with unique challenges all its own. Because of that, it’s important to make sure the legal and organizational foundation of any new franchise is established the right way.
If you’re wondering how to be sure you’re franchising your business the right way and setting your new franchise system up for success, this series is for you. Read on to learn more about the winning strategies for franchising your business.
Winning Strategy #1: Begin with the End in Mind
As a new franchisor, the best way to ensure the long-term success of your new franchise system is to begin your franchising journey with the end in mind. Make sure your franchise has the proper legal protections from the start, develop a solid sales strategy, and establish strong systems and procedures for supporting your future franchisees. Beyond the basics, it’s also important to have a five-year vision for your brand to stay on track. And last, but not least, make sure to find a supportive community of like-minded franchising professionals to network and grow with over time.
Winning Strategy #2: Build a Rock-Solid FDD and Legal Foundation
Because franchise laws range from federal regulations to complex local state laws that vary widely between locations, the future success of your franchise will largely depend on the strength of its legal foundation. Having a strong legal infrastructure is critical for longevity, and working with the right legal team is key for establishing a franchisor entity, protecting your trademarks, developing strong legal documents and franchise agreements, and making sure you’re following best practices as a franchisor.
Winning Strategies #3: Competitively Position Your FDD
In the world of franchising, a properly-prepared and competitively-positioned Franchise Disclosure Document (FDD) can lay the foundation for a successful franchise system that will continually stand up to the competition. Although the contents of the FDD are limited by legal regulations under the federal Franchise Rule, there are steps you can take to make sure your FDD communicates the value of your brand over others during the franchise sales process. Those steps start with having the right mindset, following best practices, positioning your brand competitively, and developing strong franchise agreements based on your FDD.