how to franchise my business

How to Franchise a Business

Full Answer

Should I buy a franchise or start my own business?

Buying a franchise is very different from starting a mom-and-pop business. Since there is an already established system in place, there is a higher likelihood of success. If you invest in a proven franchise opportunity and follow the system the franchisor has put in place, you should be on your way to running a successful business.

How to successfully franchise your business?

• Present Your Business to Potential Franchisees. After identifying your goals, you may now sell your franchise business model to your prospective franchisees.
• Provide Hands-On Training. If you have a vision for your franchise business, your franchisees must share the same objectives with you.
• Work On the Ground. ...
• Implement The Organizational Culture. ...

How much will it cost to franchise my Business?

There are currently 14 registration states with franchise registration fees ranging from $250 to $750 plus additional legal fees leaving you potentially $15,000 to $25,000 out of pocket. A Federally Registered Trademark will set you back $1,750 to $7,500.

Should you start a franchise business?

There are many benefits to running a franchise, as there are benefits to starting a new business. The truth is, which one is right for you will depend on what your goals are and the type of entrepreneur you are. If you start a business from scratch, you’ll have your work cut out for you.

What Does It Mean to Franchise a Business?

Franchising is a type of agreement that entails reproducing a successful business model across multiple locations. As the business owner and franchisor, you would create a franchise agreement to begin the process and move toward opening a new franchise.

How to Franchise a Business

Once you decide to franchise your small business, you'll need to prepare to take on the new independent contractors that will run their individual franchises.

Franchising Your Business: Pros and Cons

Business ownership is rewarding work, and it often requires making tough decisions. Weigh the benefits and drawbacks of franchising your business to help inform your decision of whether franchising is right for you.

Why Should I Franchise My Business?

Your business is strong and thriving, so it is natural to want to expand it . Opening new locations is a lot of work , and it takes time and energy to do it right, which is why many business owners are turning to franchising. Below are the two biggest advantages when you decide to franchise your business.

What can a franchisee do?

A franchisee can spend the time dedicated to building a strong business unit, marketing, finding a site, negotiating a lease, hiring and training staff, and so on without worrying about how other locations are faring. Their focus is on their own business!

Why is franchising important?

The above advantages to franchising prove that it can lead to a more sound and economic expansion, a stronger dedication of franchisees as opposed to managers, and above all a greater potential for growth by having individuals running each location and not having to manage each location .

What is accurate franchising?

Accurate Franchising consultants provide strategic planning, sales support/training, marketing, operations, legal, financing and real estate assistance – all designed to help business owners grow. To provide the personalized and time-intensive consultation required, Accurate Franchising currently limits the program to five clients at a time.

What is the roadblock to expanding a business?

A huge roadblock to businesses that are looking to expand is finding and training a qualified management team. With franchising, you substitute training a manager for training an owner. Franchisees are motivated to work hard because they have made an investment and have a stake in their business’ profits.

Is franchising a good strategy?

Starting a second (or third, or four th) location is a great expansion strategy, but it costs money, man hours, and time. Franchising your business can help you save on these three hot commodities in ways that starting a new location on your own cannot. We certainly do not mean to suggest that franchising is free or easy, but it is a growth strategy that can cost considerably less.

Is a small business a good place to start?

A thriving small business is a good place to start! Your business also needs to be easily replicated in a variety of locations, appealing both to consumers and to potential franchisees. On top of that, it needs to be profitable for the franchisee as well as you, the franchisor.

How much did franchises make in 2007?

Franchises accounted for $1.3 trillion in revenue and $153.7 billion in payroll disbursed to 7.9 million workers.

What did Farid do to open a franchise?

To see what might be involved in opening a franchise, Farid decided to do a test run himself, in the form of a second store. He found a building, filed the documents, and went through all the minutiae himself, from interior decoration to training the staff.

How many flower shops did Tariq Farid own?

Tariq Farid had owned four flower shops by the time he was 19. He remembers sitting with his mother, who helped him around the shop, when he was making sixty dollars a day, and he’d tell her of his dream to someday make seventy. When he reached his goal, he turned it in for another dream.

What does Mulgannon say about franchising?

Mulgannon says that if everything's not in order in a company's Item 19, he'll decline to work with them. These legal complications are an area in which the hopeful franchisor may want to seek out professional help. Farid wouldn’t exactly advise anyone to go about franchising their business without expert advice.

Does Farid recommend franchising?

Farid wouldn’t exactly advise anyone to go about franchising their business without expert advice. "I was mostly doing it myself," Farid says of his early efforts to raise money, cut through the legal thicket, and build his trial franchise. “We had no money, and it was tough to go to a bank with a basket of fruit.

Do franchisees have to be precise?

The directions provided to each franchisee will likely have to be precise. Business owners, however, are frequently accustomed to running their companies on intuition, and it may be difficult for them to itemize all the infinitesimal but important obligations they fulfill every day.

Is franchising a good idea?

Franchising your small business may be a good way to grow fast. Figuring out whether or not franchising will work for you is a matter of knowing your business and yourself. The idea of growth is appealing, but a small business owner wants his or her company to scale at a reasonable rate.

What is franchise business?

A franchise is operated by an independent business owner that has permission by you (under a contractual relationship) to operate the same type of business you created, offering the same services and products in the same manner as you and under your same name.

What is a franchisee?

Instead, a franchise is the result of a relationship between you (franchisor) and the independent business owner (franchisee), where the franchisee is fully responsible for all costs associated with starting and operating the business under a specific set of rules that are determined by you.

What is a franchise disclosure document?

You are required to give all franchise prospects this package which is a document that regulates the relationship between you and your franchisees. This package is known as the Franchise Disclosure Document. To learn more about what is actually in this package see this article about the elements of a franchise disclosure document . The Franchise Maker will work closely with you to put together all the various pieces necessary for this package and most important put in the format necessary for a franchise attorney to review and file it.

How does the franchise maker work?

The Franchise Maker will help you through the entire process to franchise your business. We have the experience and knowledge to help you decide if your business can grow through franchising. If franchising is right for your business, we provide you with our proprietary franchise development process. We will manage your entire franchise development process (no reverse delegation, that's right we actually do the work) resulting in a comprehensive franchise program that is unique to your business. And most importantly, one that you understand so when you are asked questions later from a prospective franchisee you do not have the deer the headlights look.

What is the execution phase of franchising?

Execution refers to not only what you are doing to help your franchisee with regards to securing space and build out (if applicable), but also what you are doing to help them prepare for your franchise training program. The franchise training program is yet another part of execution. Rest assured that as part of our franchise development program we will be working with you to define what is your franchise training program and through our proprietary processes, provide you with a road map that will enable you to identify what you will be doing each training day.

What is franchise royalty?

An initial franchise fee and ongoing royalty fees are paid by franchisees for the right to use your system, methods, techniques and intellectual property (such as trademarks, service marks and of course your trade secrets).

What is franchising strategy?

A franchising strategy provides other people with the benefits of owning their own business, using your name and logo, system and know-how while benefiting from your experience and being provided with training and ongoing support. This allows you to grow and build your brand faster compared to expanding on your own.