If you are interested in expanding your business through franchising but are unclear on how to do it, there are 7 steps you can follow to become a franchise mogul. It will be an extensive and time consuming process, but if completed successfully, your dreams of expanding your business can become a reality.
The first step is ensuring your business is ready to be franchised and making sure your product is salable. Not only does your concept have to appeal to customers, but also potential buyers who will be purchasing a franchise. This may involve extensive research and thought. Additionally, it is imperative to prepare yourself for change as you will be switching roles from selling your product to becoming a franchisor.
The second step involves understanding what you will have to do regarding paperwork for the Federal Trade Commission where you will need to submit various legal and financial documents. The next step deals with making decisions regarding your model which includes, but is not limited to, how you want to run your franchise, the cost, how you will market, and the geographic area you are targeting. The fourth step involves registering as a franchisor and generating the needed paperwork. Be prepared for criticism and even the demand for more paperwork than expected as you are going through the application process and awaiting approval. This step requires patience as it often takes months to hear a response regarding an approval.
Step five encompasses the hiring! It will be virtually impossible to run a successful franchise without hiring some advocates, marketers, and trainers. Hiring a second trainer once you continue to expand will also be necessary. The sixth step involves actually selling franchises which will be an on-going process. Encouraging interest in your business is key and being able to tell a story is necessary when you are seeking buyers. You must convince the buyer that they will benefit just as much as you will and instill a passion inside of them for your business. The final step, step 7, is when you begin to support the franchisees. Consistency is important at this step and you are responsible for ensuring customers have the same experience at each location. Training proves to be significant at this step which is why hiring trainers is necessary.
Once you have successfully completed all seven of these steps, you will have become a franchise mogul. After you have ensured your brand is salable and conducted research, understood the legal requirements, made decision regarding your business model, registered as a franchisee, hired some help, and sold franchises, you can begin to support your franchisees.