Franchising is an
intricate process of business expansion that is comparatively more lucrative to
conduct than the traditional methodical investment. The traditional form of expansion involves a business to invest and
manage a unit of their offering or product with the sole responsibility and
liability of the same. In franchising, the game is quite different. You as a
business owner get to take part in a collateral and capital free business
expansion model with no worries towards the risk of its failure. As the
franchised unit stays in the sole responsibility of the franchisee, the individual who bought the right of business
conduction from you, it is debt free.
Franchising a business is highly beneficial when compared to traditional business
expansion techniques and this is so because of the sheer amount of possibilities
that it offers to the business undertaking the same. Numerous brands have
tasted success in effective business growth by embracing this methodology. If
you are a business owner and looking for expanding your business yet don’t have
access to the necessary capital that is required to do so then franchising is
the ideal option for you. It helps you successfully penetrate potential markets
without shouldering the responsibility of actually running the units that you
have managed to open in them.
Opening a Franchise: The Dos
There are
multiple avenues of running a business, be it a franchise or a self-owned unit.
Therefore, in order to incorporate the same successfully, a business owner
needs to adhere to certain aspects that are crucial to the success of the franchise/ franchises. If you often wonder
about the question “how to franchise my business?” then worry not as we will answer all your queries in this
section. There are many factors that you need to keep in consideration in order
to ensure the success of your franchising network and this should be done even
before you manage to open your first franchise.
The first and
foremost aspect of franchising is a market
evaluation. You need to evaluate the market potential and acceptance of your
idea before embarking on the journey of franchising. You need to check whether
your idea or offering can be replicated without your or your team’s involvement
in all the operational requirements of running a separate unit. Then you need
to hire an attorney to get all the paperwork
done in order to ensure the legality of your entity. Franchising a business, like
any other business, vertical is set upon a robust legal structure with the
coverage to all the aspects of the franchise’s operation.
Now, after
looking after all the mentioned criterions your next goal should be a focus on setting up a robust and replicable
operational structure. You should ensure that quality is maintained across your
network and in order to achieve so, a proper training process should be set up.
Hire professional trainers to train the manpower and management of your
franchise units. Franchising a business
involves setting up of a financial structure so that there is transparency in
all the revenue and expense related verticals. All these will cumulatively
ensure the success of your franchising endeavour.
We can come to an
effective conclusion that franchising is indeed beneficial for businesses
striving to make their brand an acclaimed and intensive entity. Major global
brands have tasted success via this route and have successfully transformed
into household names. Brands like McDonald’s, Dominos, Eagle Boys Pizza are all
well-acclaimed F&B brands that have established a robust global presence
via the franchising way of business expansion. Therefore, wait no more and
embark on effective business expansion by
franchising your business!
