Is Your Business Right for Franchising?
Franchising is a rewarding business if you gather your facts and know what you are doing. Unfortunately, many people jump into this industry without adequate research and proper planning. Moreover, there are many experts who lead people down the wrong path by telling them that franchising would be great for their business.
Many businesses expect too much too soon and hurriedly draft a Uniform Franchise Offering Circular (UFOC) and Franchise Agreement. These documents are crucial and need to be facilitated by an attorney. But a franchising process should never be rushed because it can lead to disastrous consequences.
Franchising is like every other business. It requires the right mixture of marketing, brand management, professional expertise, product invention, copyright evidence, financial preparation and adequate funding.
A successful franchise goes beyond spending $1,000’s of dollars and getting legal documents. If a franchisor goes into a business place looking for franchisees without proper preparation, that business is an accident waiting to happen.
If you want to know if a business is ready to be franchised, the agreements need to be prepared. An extensive legal document needs to be prepared. It should cover operations, licensing, payment fees and more. If you do all this, then ask yourself if it is a franchise you would have loved to purchase. If you do not find your business attractive enough, no one else would touch it.
The uniformity within a franchise is important. This can only be achieved if a manual is painstakingly prepared. This manual should cover every area of the business. It should be laid out in simple language and be easy to understand for anyone who wants to be a franchisor. It should include information on how clients should be treated to the type of stationary that should be used.
It is important for a franchise to attract people from the onset. If your business is having issues attracting and keeping customers, you would struggle to build a franchising system that can succeed. In addition, you should have a business model in place whereby ongoing support and training can be offered.
A franchise is a great way to take your business to the next level. But it is not for everyone. It is important to share your thoughts with an expert. A professional will help review your business and ask you specific questions that would determine if your business is ready for expansion.
If your business ticks all the right boxes, then a future plan of action can be taken. This plan will help to prepare your business for an eventual take-off in future. Franchising is not a process that you should hurriedly get into. You can continue with your present business structure while you put prospects into perspective.