Are You Tired of Asking How Do I Franchise My Business?

Have you ever asked anyone how to franchise a business? In this era, franchising is getting prominence day by day. In the advanced countries, you will be surprised to find a franchise is sold in every hour. It has grown into a flourishing and established business activity. Big names in the field of trade are embracing franchising for diversification. On the other hand, franchising has also become an effective weapon for the small companies to grow and expand the business.

When should you franchise your business? Yes, you can franchise your business when it is booming, ready to be duplicated. This is the right time when you should make the leap of franchising.

Franchising a business is no less than tying a knot. Yes, it is exactly so. You should not take it as an endeavor you rush into. There are many chances of failure. Therefore, your each step should be taken with utmost care. You need to look after every aspect from budgeting for up-front costs, vetting reliable franchisees, filling the right and legal paperwork to preparing the royalty payments. Meanwhile, you can smell that there is no shortage of daunting tasks ahead for you. But this way can be smoother for you if you play your cards in the right way.

The first step of franchising is to consider some issues such as:

The resources which you can look to as your start out

The amount of the ballpark startup costs involved in the business

The amount of a franchise royalty percentage which you need to collect

Your capacities to expand the business

Legal issues including the agreement between the franchisor and the franchisees

Importance of the franchise disclosure document and detail about it

The possibilities of attracting potential franchisees

The ways which you should employ to screen prospective franchisees

Locations which you should consider at the initial level

The common mistakes which you should avoid

As it has been stated above, you should consider all of these things at first. It will help you to visualize a clear outline of your franchising.  In short, primarily your only task is thinking and gathering relevant information about franchising as much as you can gather. The next step is the stage of action. Now you should talk with each franchisee individually to further the process. This stage is followed by another one in which you should proceed all the legal processes.

Now you should ask “how do I franchise my business” to The Franchise Institution to get the direction of a right way.

An Inside Out Of the Franchise Model

Well you must be all aware of the Starbucks coffee. You must have seen or had a cup of coffee in one of their coffee shop. Also you have seen Mcdonalds and other joints like them at many places. Many of us must be having an idea that it’s the company that is opening its outlets at various places in order to grow their business. Yes the company is expanding its business alright but it’s not the owner of all the branches that are running under its banner. Wondering what is that! Well it is basically a franchise model or setting up a franchise to improve the revenue generation.

How Business Franchising Works?

Now you must be wondering what is franchise model. It is basically offering someone to run your business to someone else under your banner of your brand name. In this, there are two parties involved, the franchisor and the franchisee. In this the type of business the franchisor takes a predetermined amount from the franchisee as an agreement between the two parties. In return the company letting out the franchisee gives permission to use their brand name and also gives support to build the setup of the franchise that the other party has taken. The only thing franchise has to do is arrange the capital for investment and other technical specifications required by the franchisor. Once the business starts, both the parties take up the part of the promotion and other marketing strategies for business growth. The main mother companies take a fixed percentage of amount as royalty from the franchisee as agreed from between both the both the parties. In this way, both the franchisor and the franchisee keep their money ball rolling.

The model of franchise has grown and flourished a lot in few years time and it has been particularly explored and capitalised mainly by the startup business houses. Eating joints and playschools have found a good volume of business by setting up a franchise. The investment part varies upon the kind of franchisee you are taking and the investment limitation set by the mother company. It ranges from lakhs to millions which you can take depending upon the type of capital you have. It is indeed a good business opportunity for the small houses and also for the new entrepreneurs who want to start something of their own independently.

However it is better to do a good market survey and also a little socio-geographical study before you take up any kind of franchise or give any kind of franchise. Royalty fees can be a little tricky so it should be crystal clear between both the parties before signing an agreement. If you are giving out franchisee then marketing your brand name is the foremost important thing. Contract signing duration should also be clear to avoid any kind of dispute and renewal clause must be taken care of. Franchisor has the power to revoke the agreement if the franchisee is found violating the contract terms on any grounds. 

Bottom Line:

Proper marketing...we repeat... proper marketing is necessary for the growth and development of any franchise model. With amicable coordination and planning, both the franchisor and franchisee can benefit in a huge way and flourish their business by setting up a franchise.