How to Franchise Your Business
Five Easy Steps
Contact us for our Do-It-Yourself Franchise Kit; we enjoy working with new franchisors. Visit our consulting page and contact us. No franchisor is too small.
Step One- Set up Procedures
Procedures should be set up to manage franchisees in addition to running the home office operation. See our ISO 9000 page and contact us.
Step Two- Write Operations Manual
It must be comprehensive, and it must clearly spell out how the franchisees can successfully run their businesses. See our Operations Manual for an all-inclusive manual that will get your franchise up and running quickly.
Step Three- Registration of Trademark
The franchisor must apply for and receive a trademark under which to do business. This must be disclosed in the FDD. See our FDD and Franchising Agreement.
Step Four- FDD & Franchise Agreement
The agreement that binds the franchisee and franchisor, clearly stating the rights and obligations of both parties, is called the Franchise Discloser Document, or FDD. It should offer adequate protection to the franchiser, and, at the same time, be fair to the franchisee. See our FDD & Franchise Agreement for the most comprehensive Disclosure Agreement on the market.
Step Five- Open Model Franchise Outlet
This is the place “where the rubber meets the road” where your theory is tested; a real franchise outlet is put into operation to test the business model.
It is usually essential to the development of a franchise network that at least one pilot business be established. A pilot business can be essential to insure that franchisees or potential franchisees can be satisfied that the success of the business is not dependent on what might be considered a unique location or a charismatic leader.
Also a pilot business will allow you to recognize and sort out problem areas in relation to marketing, acceptability of the product or service, local planning requirements, building regulations, health and safety requirements, and other similar problems relating to the type of business the franchise operates. It will also enable the franchiser to test different layouts and designs in order to discover the best combination.
Training in the operational side of the business as well as teaching management skills will be essential. In developing the pilot business, you can gain valuable experience in relation to the introduction of straightforward and efficient methods of accounting, and controls.
A real franchise is put into operation. Here is where all the procedures and processes, including the nitty gritty details are implemented in real life.
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