How to Franchise Your Business

You have made the decision and you are franchising your business. From here on, important and necessary steps need to be taken to avoid any problems. It can be a very complicated process and may require professional and experienced advice from a consultant.

Firstly, you are required to draw up a franchise plan and a business plan. The franchise plan is a plan for franchising your business and describes in detail all of the steps you will take as well as the franchise fee. The business plan outlines your overall business strategy over the next few years. Your plan should also include a summary of your business, its background and organizational structure. Next, you are required to draw up a comprehensive operations manual as well as a preliminary and continuing training programme. The operations manual should describe in detail what the franchisee is required to do, how they are to do it, and to what performance and quality standards they are to perform. The training programme should ensure that the knowledge contained in the operations manual can be transferred successfully to a third party within the time available. In order to legally sell franchises, you must draft up a franchise agreement and a Uniform Franchise Offering Circular (UFOC). Also, depending on where franchises are being sold, you will require a state registration.

Important to remember it that it is your responsibility, and obligation to franchisees that are paying for the benefit of using your brand, to protect it against abuse, both by outsiders and by ex-franchisees. This will require specialised advice from professionals and lawyers on protecting your trade and service marks.

When franchising your business, you must develop the ability to market and sell franchises. Therefore, you will need to develop your knowledge on how to attract potential buyers and you will require the necessary materials such as brochures, videotapes and DVD’s. Also, you will need to be educated in proper sales, disclosure and compliance techniques. Create a comprehensive marketing plan and stick to it.

Franchising a business can have rich rewards if done correctly. Make sure you take all the necessary steps carefully and decisively. Remember, if you get stuck along the way, there are consultants that will aid you every step of the way.