Have you found success with your business and want to take it further, much further? Franchising may be the option for you. As a business owner, you dream of seeing your brand become a household name; you envision hundreds, maybe even thousands of franchisees installed all across the nation and around the globe. You can make your dream a reality by formulating a solid expansion strategy for your business.
Becoming a successful new franchisor is easier said than done, however. You will have lots of legal paperwork and regulations to wade through and sort out. Not only that, you’ll also have to come up with the capital to invest in your venture.
Begin the journey to becoming a franchisor by considering the following factors.
Is Your Business Ready?
Do you have a good, unique concept for your franchise that will sell? Are your existing unit(s) pulling in profits? Have you done enough market research to confirm demand? Are you willing to relinquish some control to franchisees? Have you explored all other alternatives before determining that franchising is for you? If you have clear answers to all of these questions, you may just be ready to expand.
Fulfill All the Legal Requirements
Make sure you meet all the federal and state requirements for selling a franchise. If you make a misstep in this process, you may face costly delays, or worse, legal repercussions. To ensure that this doesn’t happen, it is highly advised that you consult with an experienced franchise attorney.
Formulate the Model for Your Franchise
Important considerations for your franchise model include fee and royalty percentage, terms of agreement, size of territory awarded to each franchisee, geographic areas in which you are willing to offer franchises, the specifics of your training program, and more. Be detailed-oriented and think about the context in which your franchise will find the most success.