Developing a proper franchise program
Franchising your business is a tried and tested way towards rapid business growth. However, it does not always offer an automatic ticket to success. We live in tough economic times and the option of franchising is just a small portion of what your business needs to go to the next level. Despite these seeming challenges there are many business owners who still strive and turn their brands into household names through the power of franchising.
Investment of Capital & Time
If you are thinking about franchising your business, it is crucial to note that the process is a long one and requires a considerable amount of capital. Besides the time frame and the capital required, the right concept cannot be overemphasized. If your franchise concept is hard to implement or does not guarantee good profits, franchisees will avoid you like a plague.
If you want to be a successful franchisor, the right decisions are necessary to steer your business in the proper direction to benefit your business in the long-term. You also need to ensure that your business does not run afoul of federal and provincial laws that regularize the franchise industry. If you are not on the good side of the law, your franchise will crash and burn before taking off.
Is Your Business Franchisable
The million dollar question that you should ask yourself is if your business is a franchise in the making. The popularity that you garner and the profits that you realize from your business should not be the sole reason why you would want to develop a franchise program.
There are several other factors that are vital and that you should equally consider.
- Firstly, mull over your concept. Does it offer a unique twist? Can you tweak it here and there to make it relevant for the long haul? The concept has to continually appeal to your consumers and also tickle the fancy of your franchisees. It must be something that you can easily put in order and implemented, without having to be physically present at any franchise location.
- Secondly, never rely on your 6th sense that your business will blow people away everywhere. It is important for you to gather market research to confirm that there is a widespread demand for your product or service. If there is no potential that your franchise would be a national or international success, it is a risky venture to still go ahead.
- Thirdly, you would need to brace yourself for impending change. A franchisor comes with a slew of different activities that are different from the regular business owner. He is saddled with running the parent company as well as servicing franchisees. This is a daunting task. So prepare to adapt and juggle enormous responsibilities.
- Fourthly, in order to develop a franchise program, you must register a Franchise Disclosure Document with the relevant authority. You will be asked to provide information about your intentions which includes a manual about your business operations for franchisees as well as financial audit statements. It helps to hire a franchise experienced attorney or consultant to ensure that you are doing things correctly.