Key Aspects to Make Sure Your Business is Worthy of Franchising

 Franchising has always been a potential option to explore when it comes to business expansion. But does it mean every other business can opt for it randomly without even conducting proper research? The answer is certainly ‘No’.

Though with the help of franchising, many businesses have attained newer heights of success. But many entrepreneurs also have experienced serious failure after getting into the franchise business. So, before you jump into the thought of how do I franchise my business, let us know about the key aspects which you should eye on to evaluate whether it will work for your business.

Easy to be reproducible

“You can't do well unless your franchisees do well” – wisely said by Richard Cole, Founder Geeks on Call.

It’s pretty obvious that all the unique attributes of the original business including founder’s competency in terms of selling products or managing the operations cannot be replicated. Considering the same, franchisors must ensure that they come up with a reproducible business model which, can be easily replicated by franchisees after getting proper training for a stipulated time. As they are investing a substantial amount as the business capital, they want to learn all the operations as fast as possible and will not probably wait for the outlet to earn profits on their own.

Unique Selling Point

Unique Selling Point (USP) is the thing that helps you to make your business stand out. This is one such factor that lures potential franchisees to buy your franchise as it increases their chances to earn substantial profits. So, always try to identify that USP of your business or inculcate the same if you don’t have one for attracting franchisees to collaborate with you.

Consistent profitability

Check whether your business is making sufficient profits at a consistent basis or not. No franchisee will invest in a franchise that is incurring losses over the past few years as that would simply put his entire money on a toss. So, as a responsible franchisor, you must ensure that the franchisees investing in your franchise system will find some lucrative profit-making opportunities after paying you the franchise fees.

Flexibility

As a piece of expert franchise advice given by most dexterous consultants, you must ensure that your business operations are flexible enough to adapt as per the local markets thereby, helping the franchisees to enhance their entrepreneurial attitude. Based of demographics, your product or service must be modified to become a hit in other regions as well.

Large market of operations

Franchisees always look for businesses that boasts a wide market base. So, you must ensure that your business has a potential market for them to explore and thrive. Your business might be a popular brand nationally or globally, but many potential customers fail to avail the service or buy your products simply due to accessibility or availability issues. With the help of franchise system, you can eliminate these barriers and widen your customer reach.

To become a successful franchisor, you need to have strategic planning and efficient personnel staff who can analyse your business dynamics and help you take the right decision when it comes to franchising your business. Also, you must consult expert professionals to get a clear understanding of all your queries related to ‘how do I franchise my business’. Remember, specialised guidance is always advisable for exploring any unknown periphery.

Also Read: Things Franchisors Must Prioritise During The Current Crises

How to Franchise a Business? – Check Out the Steps Here!

 Franchising a business becomes a popular method of developing a firm in this competitive world. If you want to turn your business into a franchise, you must think about the potential of your business model beforehand. A lucrative model can only be converted into a successful franchise system. To make things effective, let’s learn how to franchise a business.

An Introduction to a Franchised Business

It is a process of allowing a third-party firm (the franchisees) to utilise the business rights of the original firm (the franchisors) for developing a new outlet. It includes the sharing of business name and logo such that you get a new store by investing a little capital. If we consider the roles of the franchisors, they have to promote the new store to attract customers at the new location. Also, they have to provide training to the franchisees to develop the outlet.

The role of the franchisees is to build and operate the new store by utilising their manpower. It includes the hiring of talented staff members and making salaried payment to them. Did you know? The franchisees are the sole responsible for the operating of the new store by following the guidelines provided by the respective franchisors. If the original firm is able to share the details with accuracy, it is possible to replicate the business model without any errors.

The Steps of Franchising a Business

• Know Your Business First

The first step is to understand your business in detail. Upon getting a deep insight into your business, you get to know whether your business model is ready to franchise. In this context, you can consider the franchise advice of experts. The assistance of professionals helps you evaluate your firm precisely that help you walk into the franchise system with confidence.

• Identify Your Budget

Suppose you prefer developing a new store single-handedly, you have to invest large capital in the market. For small and mid-sized businesses, the large capital investment restricts them from spreading their networks. When it comes to franchising the business model, it requires a little capital. However, you must have the idea of the total finance to estimate your expenses.

• Develop an Agreement

The very next thing is to prepare the franchise agreement for entering into the franchise system. It must be transparent such that the franchisees understand every single clause mentioned in the agreement. In common, the pact consists of the details of the royal payment and franchising fees. It also includes the details of the franchise system tenure.

• Begin the Franchise Journey

Once the franchisee and the franchisor agree to sign the contract based on the mentioned terms and conditions, it begins the journey of the franchised business. For franchisors, they have to promote the business to reach the target audience and make sure that the new store receives customers from the very first day of its operation.

Types of Franchised Businesses

Today, you can find several types of businesses that have been franchised. Out of these businesses, some of the popular types include-

• Restaurants

• Fitness outlets

• Education centres

• Beauty and Spas

Irrespective of the business type you have, you are advised to consult with a reputed advisor to understand the potential of your business model. Experts provide you with adequate knowledge to help you understand when you could enter into the franchise system. It not only helps you avoid mistakes but also gives you the confidence of spreading your network.

Final Words

One of the greatest advantages of franchising a business model is that you could set up multiple outlets at different locations by investing a little capital in each. If you are interested in replicating your firm like a pro, you must learn how to franchise a business from professionals.

For picking a reputed consultant, you are advised to verify reviews online. Since COVID-19 has changed the way of performing business-related operations, you can find most consultants with their respective official sites. It helps you get details before contacting anyone. So, take your step now and reach a trustworthy advisor to understand the franchise system in a better way.

Also Read: How To Choose A Franchise To Invest In During Or Post The Pandemic