How To Turn Your Business Into A Franchise: An Easy Step-by step Guide

Consider turning your existing business into franchise. Like cloning a pet. Exciting, right? It’s exciting, right? Join us for a deep dive into “How to Franchise a Business” and expand your horizons.

Firstly, make sure your house is in order. The business model needs to be solid. If you think of baking, perfecting a recipe is important before distributing it to others. If your operation is chaotic now, franchising can exacerbate those problems.

Create a guide for your franchisee. Any franchisee will want to have this. Everything from customer service standards to the procedures for opening a franchise should be covered. Consider writing instructions to someone who is unfamiliar with your business.

Now comes legal stuff. It’s important to have a Franchise Disclosure Statement (FDD). Not just a piece of paper, this is a legally required document which provides all information needed by potential franchisees. To draft the document, hire an experienced attorney in franchising. You can’t afford to skimp.

The money talk is now time. There are costs associated with franchising. Initiation costs can include marketing costs and legal fees. There will also be ongoing support charges once franchisees are onboard. You should create a detailed budget so you will know exactly what you are getting yourself into.

To attract franchisees, marketing is essential. Consider using multiple media–social networks, franchise expos or word of mouth can work well. Make sure you highlight in your pitch why someone should invest in the brand.

Training is also a biggie. They need thorough instruction on how to manage their new store. Consider this like teaching someone to ride their bike. You don’t give them keys and hope they will not crash.

Support doesn’t stop after training. Maintaining consistency is essential for all offices. Systematize communication to solve issues and communicate with employees.

But don’t neglect branding. Here, consistency is the key. From logos to interactions with customers across franchises, everything should be uniform. This is crucial to the reputation of your franchise.

You don’t have to take my words for it. John’s Coffee House became a nationally recognized chain of cafes through franchising. John created an easy to follow manual on how to create the perfect cup of coffee. He then perfected all his recipes.

His FDD was then drafted by a franchise lawyer. His marketing campaign targeted coffee fans who wanted to open their own business but didn’t have any idea how.

John developed comprehensive training programs on everything from espresso shot making to inventory management. His quirky branding was also maintained by regular checking-ins at all his locations.

Now you know! This is certainly not a simple task, but with some careful planning and preparation it could be extremely rewarding.

Questions or ideas of your own to add? Post them here!