What do I need to consider, if I do become a franchisor?

Whilst franchising is a great industry to join, turning your business into a franchise will require a great deal of thought. But, as with most things within our industry, there are people and organisations to whom you can turn for support and guidance.

To help guide your thinking, and any future conversations you start engaging with, we would suggest you reflect on the following considerations:

You will need to be able to prove to prospective franchisees, your business is successful, and not just an idea on paper.

Before they invest in your franchise, they’ll want evidence the model genuinely works and will deliver a profit back to them. Franchising is not a tool to fix a bad business. It’s a model used to replicate a successful business.

To franchise your business, you’ll need to develop two vital documents:

1. Your Operations Manual will show franchisees how everything must be done in the business. It covers sales and marketing, through to the finances and operations. This will be your brand’s bible, the ‘how to’ guide of your business and will need to be regularly updated as your business and brand evolves.

2. Your Franchise Agreement will set out how the relationship between yourself and your franchisees will work. This is the document that is there to protect your brand and business system and will clearly set out the rights and obligations of all parties so it is key to get this right from the start!

3. You will also need to create your Franchise Prospectus. This should provide:

• A clear view of the costs needed by someone looking to invest in your franchise, along with your package details

• Projections, containing a disclaimer to evidence what they are based on

• Your plan for onboarding new franchisees, and the ongoing training & support they will receive from you.

 

Can the business be easily replicated in multiple locations, by people following the same system and brand you have created? Can you teach your franchisees to do what you do? Whilst your network will have a range of skills and experiences, which can enhance your brand, there is little point in having a franchise only a handful of people who are like you, would be able to run.

 

There are people within franchising who definitively know how to help you achieve these, and more. Don’t try to work it out alone, make use of the those who have devoted their careers and services to support new franchisors, like yourself, make your business even more of a success.