A Timeline for Taking Your Concept to Franchise

You are a confident person with an innovative product/concept. You started a business of your own and within a couple of years; you have repaid your debts and now getting good return from your business. But you don’t want to stop here; you want to spread your name in every corner of the country, if not the world!

There are funds to start expansion and the market is also ripe. Franchising is a great way to expand the business; you know that and want to try your hands on it. But before you do, think of these few points: How long have you been in the business? Even if you may be known locally, if you start franchising just 2 to 3 years after starting your business, then getting franchisees from another state or locality might be difficult.

In this situation, what you can do, just like many successful franchisors have done in the past, is to open another location that is company-owned. It is true that you do not have to run your franchised units, but some amount of time and energy need to be spent on the franchised units. So, gain the experience of administrating more than one location by opening up company-owned units, before you go into signing up franchisees. Many successful franchisors have one common reason behind starting their franchising business. And that is people coming up to them and asking whether they can be part of the business. If that is also happening in case of your product/concept, then start thinking about joining the franchising business.

If you see that all the pieces are falling into places, then only try to expand your business. It will take some time (depending on in how many states you are applying for license) before all documents are ready. You will also need to set up a different team or department to handle the franchise-related inquires. You can also start giving out feelers to get potential inquiries. Brochures and other informative articles too must be ready. When you start to get applications, review them meticulously. Don’t just take anyone ready to pay the franchise fee; think whether the person is committed enough to run the business for a long period of time or he just wants to get associated with this “hot” market. Meeting short-listed candidates face-to-face can help you to know you more about him/her. If everything is well and good, then sign on the agreement papers and become a franchisor!

brandEXPANSION’s development team has wide experience in all phases of franchise enhancement. Contact us to begin the process off taking your idea to a franchise reality.

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