how to turn your business into a franchise

How to Successfully Turn Your Business Into a Franchise

• Develop a growth plan Next, put together a strategic plan with clear and measurable goals. ...
• Find opportunities to simplify operations Good growth plans are important to support expansion. ...
• Ensure your franchise benefits both parties The shared investment of a franchising model provides benefits to both the franchisor and franchisee alike. ...

Full Answer

How to turn a small business into a franchise?

What Steps Do I Need to Take to Franchise My Business?

• Create a Business Plan. The first step to a successful franchise in Australia is a deep understanding of the market. ...
• Pilot the Operation. ...
• Prepare a Franchise Operations Manual. ...
• Create Franchise Agreement. ...
• Training of the Franchisee. ...
• Decide on Investment Costs. ...
• Choose an Ideal Franchisee. ...
• Set Up Management and Support. ...

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. ...

What are the advantages and disadvantages of owning a franchise?

These include:

• Limited Control: As a franchise business owner, you have limited control. ...
• Costs: Opening a franchise is not a cheap endeavor. ...
• Potential Leadership Changes: There is always the possibility that the franchise can be acquired and new leadership will move in.
• Lack of Privacy: Being a franchisee also comes with a lack of financial privacy. ...

More items...

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.

What is franchise infrastructure?

Franchise infrastructure includes everything your franchisees will need to open and operate a successful business, including a franchise disclosure document, franchise agreement, operations manuals, brand policies, training and support, and more.

How many years of experience does accurate franchise development have?

Accurate Franchising has thirty years of experience in franchise development. Contact us today to find out how to convert your business to a successful franchise.

Do I need a business plan to expand my franchise?

Don’t forget that you’ll need sound financing to convert a business to a franchise, or to expand an existing franchise. You’ll need a business plan to show prospective investors how you will use their money to provide a fair return, and you may also need access to reliable funding sources. AFI helps our clients craft clear, comprehensive business plans that can be presented to private investors or to our qualified financing partners.

What is a franchise business?

A franchise is a type of business model where the original business owner owns all of the legal rights to the business but can use the trademark to others as part of the franchise. If a person becomes part of the franchise, they have the legal right to use your trademark, logo and business practices. Before you become a franchise, you will have to research:

What is UH Small Business Development Network?

The UH Small Business Development Network is here to help. Our business advisors will help you grow your small business, increase your bottom line and develop expansion plans. All advising sessions are at no cost, confidential and one-on-one.

How Long Should It Take to Franchise My Business?

Typically, franchising your business takes from 90 to 120 days. Depending on unique factors related to your business or industry, there could be variations. A lot also depends on who you are working with and your internal team.

What does it mean to franchise a business?

When you franchise your business it means that you have taken the necessary legal and business steps to sell franchises, support franchisees, and grow your brand. First and foremost, your franchise lawyer will have to prepare and issue a Franchise Disclosure Document that complies with federal and state law.

What Are the Franchise Laws and What Is a Franchise Disclosure Document?

Franchising is regulated and requires compliance with federal and state franchise laws.

Do I Have to Work with a Franchise Lawyer?

If you are going to franchise the right way, you need to work with a lawyer who specializes in franchising and who is experienced in working with new and emerging franchisors like you.

Can a Franchise Developer or Consultant Prepare My FDD Instead of a Franchise Lawyer?

No. Your FDD is a legal document that requires the integration of federal and state-specific franchise laws and regulations and should only be prepared by a qualified franchise lawyer.

How Do I Get Started?

By reading this guide, you’ve already taken the first step! Now that you have a solid foundation as to what franchising is all about and the steps involved, start building the right team to help support and guide you in franchising your business .

How long do you have to give FDD to franchisees?

It’s required by federal and state law and is the legal foundation for your franchise. You are required to give prospective franchisees your FDD no less than 14 days before signing any agreement with a franchisee or accepting any payments from a franchisee.

How to make sure your franchise is successful?

You need to give your franchisees the best possible chance to build a successful business, and this means making sure your training is comprehensive and your continuing support is first-rate. When they are new, your franchisees will need a substantial amount of support. Although this will lessen as they become more established, you have a responsibility to support all of them as they continue to grow.

How to get your franchise set up correctly?

Getting your franchise set up correctly from the outset is vital. You will need to decide about your pricing, have a franchise agreement drawn up, put together a comprehensive operations manual for your franchisees and you should be sure you have intellectual property protection for all your branding.

What to look for when franchising a business?

If you are considering franchising your business, you need to look carefully at your business model. Is it a financial success? You will need to demonstrate to potential franchisees that they can build a financially rewarding business out of it. You may decide to run a franchise pilot first so that you can demonstrate to them that it is a viable business.

How to grow a pyjama drama business?

One route to growth that requires less financial outlay is to franchise your business. This is the option that we took with Pyjama Drama. We offer drama and creative play classes for babies, toddlers and children up to the age of seven. The founder and my fellow director, Sarah Owen, is an experienced drama teacher. She initially created Pyjama Drama classes as something to run in her own local area. Franchising the business was the most logical route to growth because trying to set up and run classes in multiple areas around the UK – without local knowledge and without being physically in the area – would have thrown up all sorts of potential problems.

Who is the person who manages a franchise?

In many cases, the person managing the franchise is the same person who has just invested a significant amount of money in establishing it.

Who reviews franchise documents?

As there can be a lot to manage and so much legislation to follow, it can be worth having all your documentation reviewed by industry professionals, such as franchise attorneys.

Why is a business plan important?

A business plan is crucial for when you’re just getting started and for when disaster strikes. However, it can also be essential for business owners to replicate their success in a second, third, or even fourth business.

Is it better to franchise a business or expand it?

Franchising your successful small business can be a way around that. You get the business expansion you desire, but the franchisee is fronting the money for your growth, which decreases your investment amount and your liability.

Is it hard to set up a franchise?

While sometimes challenging to set up, a franchise may be how you take that next step and create a name for yourself in the business world.

Is it worth considering if your business model is easy to replicate?

It can also be worth considering if your business model is easy to replicate and whether there is a large enough customer base to support more than one business like yours.

Is it a dream to start a small business?

Franchising a small business is a dream of many entrepreneurs, and is also one of the soundest options for growth without cutting into your bottom line with overhead costs.