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Franchising Your Business: Begin with the End in Mind
Published in: Guides
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Franchising Your Business: Build a Rock-Solid FDD and Legal Foundation
Published in: Guides
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Franchising Your Business: Competitively Position Your FDD
Published in: Guides
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Franchising Your Business: Adopting the Right Growth Mindset
Published in: Guides
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.
Strategy #1: Franchise with the End in Mind
When you franchise your business, as a new franchisor, the best way to ensure the long-term success is to begin your franchising journey with the end in mind. Make sure that your legal team implements necessary legal protections and that your FDD aligns with a franchise sales and growth strategy focused on a 1, 2, 3, and 5 year growth strategy. Beyond the basics, it’s also important to find a supportive community of like-minded franchise professionals to learn from and network with.
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.
Strategy #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.
Strategy #4: Adopting the Right Growth Mindset
Although having a professional sales website, strong marketing channels and a solid network of brokers are important for attracting qualified franchisees, franchising success also requires having the right mindset as a franchisor. By focusing on developing reliable processes, compelling unit-level economics and a trustworthy brand from the start, franchisors can take control of their system’s growth over the long term.
