It all begins with one simple question – how can I franchise my business? Well, we are here to shed light on everything you need to know about the best way to build your own franchise.
Franchising is about creating a replicable business model alongside a legally binding franchise contract in order to grow your business. You grant franchisees the license and right to open new locations using your trademarks, under your training, and abiding by your business systems.
Often, those considering how to franchise is concerned about doing it right and avoiding missteps. That’s why we’re here to help as professional and experienced franchising consultants. Our dedicated team can offer extensive and comprehensive insights about the detailed and often complex process of how to start a franchise from beginning to end.
When you decide on how to franchise your business, you must create a range of detailed documents including legal agreements and operational requirements. To begin with, your franchise lawyer will have to prepare and issue a Franchise Disclosure Document that is compliant with both federal and state laws. It will also be necessary for you to register or file your FDD with the state if you want to sell franchises in states that require it.
With franchises, you are able to expand your business through new locations that franchisees fund, develop, and manage. This means that franchisees provide the capital and resources to grow. In addition, you’ll benefit from royalties and improvement in your supply chain and economies of scale. When considering how to franchise, the cost to your business can vary greatly. A key aspect of evaluating franchise finances is preparing for both the development stage and the sales stage of the process.
Development and Sales
In franchising, the first stage is all about development. Here you complete all the steps necessary to be able to franchise your business. This includes everything that needs to be done prior to the point that you actually start to sell a franchise opportunity. In the sales stage of how to franchise a business, you will be offering franchises to new potential partners. This involves an ongoing process of recruiting qualified franchisees and growing your franchise system.
It takes a lot of work to sell your first franchise and build a pipeline for ongoing franchise sales. Franchise consulting companies can help you elucidate all of the steps needed to create a marketing plan in order to cost-effectively sell franchises. In order to be successful in a franchise business, you must understand what your customers want, what makes your brand unique, and what differentiates your company from those around you and communicate that to franchisees.
FMS is dedicated to helping small businesses grow through franchising. We want to hear about your business and your growth goals to help determine if franchising could be the best fit for your future. Learn more about our franchise consulting services and how we help you create a winning franchise today!