Franchising is the the worlds #1 way to expand a small business! But, just franchising a concept is not a guarantee for success. Franchising your business requires dedication to the success of others. Future franchisees must trust in you, your leadership skills to steward growth, your management team, and your ability to evolve the business model over time. However, if you are willing to embrace a “servant leadership” mentality, franchising your business can provide a growing and perpetual source of income for generations!
For a franchisor, selling the franchise concept is an essential. “Expand or Die”, as the old business adage goes… However, franchise sales success is often as much of a reflection of the time and effort you put into building a profitable business as it is in the time spent developing the tools, resources and training mechanisms needed to help others succeed at running the business under your franchised banner.
Below are 10 items to address to become a franchisor, and successfully present the franchise concept:
Conduct Market Research
First, market research is an essential step in determining the demand for the franchise concept on a national level. It is equally important to research the competition so you can highlight your differentiator, what makes your concept unique.
Develop a Franchise System
To begin selling a franchise concept, you must develop a franchise system. This includes creating a detailed operations manual, identifying the key components of the business, and protecting your brand’s identity.
Establish a Support System
Once again, you will be wearing many hats… Thankfully, you have staff members – a team – that can help with the training and support, as they are proficient in their roles; roles that make your business profitable. They are key to the success of the franchise support system. This includes training, marketing support, and operational support.
Create Marketing Materials
Marketing materials such as brochures, websites, and videos are essential for promoting the franchise concept to potential franchisees. These materials should highlight your differentiator in the market, the benefits of the franchise system and the support that the franchisor provides.
Define the Franchisee Profile
It is important to define the ideal franchisee profile. This includes identifying the skills, experience, and personality traits that are required to operate a successful franchise. It is equally important to define characteristics that you feel disqualify a potential franchisee-the “red flag” your team needs to look out for.
Develop a Franchisee Recruitment Process
The franchisee recruitment process should include a thorough screening process, training, and ongoing support. It is important to have a clear process in place to ensure that only qualified franchisees are accepted into the system.
Develop a Franchise Registration Documents
The Franchise Disclosure Document contains detailed information about the franchisor, as required by the FTC, and is required to offer your franchise concept, The franchise agreement outlines the terms and conditions of the franchise relationship. It is important to work with an experienced franchise attorney to ensure that the agreement is compliant with all legal requirements.
Attend Franchise Shows
Franchise shows are an excellent way to connect with potential franchisees. They provide an opportunity to showcase the franchise concept and meet face-to-face with potential franchisees. Franchise shows also provide an opportunity to learn from your peers, and establish relationships that are willing to provide guidance; guidance you too will hopefully provide to others in return.
Offer Franchisee’s Financing
Offering franchisee’s financing can help attract potential franchisees who may not have access to traditional financing options. It is important to begin establishing relationships with reputable franchise financing companies. Also, you could consider “in-house” financing too.
Develop a System to Measure Success
It is important to measure the success of the franchise system and make changes as necessary. This includes monitoring franchisee performance, gathering feedback, and making adjustments to the franchise system as needed. Technical is your friend, use it to help you, and the franchisees, measure success.
Successfully selling a franchise concept requires a comprehensive and well-planned approach. By following these 10 steps, franchisors can develop a strong franchise system, attract qualified franchisees, and ensure the long-term success of the franchise system.