How To Franchise Your BusinessPosted on: Tuesday, 27 August 2019 11:01 am
Franchising your business can be a highly profitable way of growing a business and can give the original business owner security, stability and excellent scope for growth over time. However, it isn’t the right move for everyone, and there are a lot of different aspects of your business to consider before moving into a franchised model.
Franchised businesses are far less likely to fail than many other new businesses, and generally report higher profits than company-owned networks. Because of the financial commitment on the part of the franchisees, they tend to be more committed and motivated, ensuring better profitability across the whole organisation.
There are a number of steps that must be gone through in order to franchise your business successfully and set you up for growth and success in the future. At The Franchise Company, we can help and guide you through this process with our expert team of franchise consultants.
Considerations Before Franchising Your Business
Before you begin the process of franchising your business, there are several things you need to take into account to ensure you are ready to take on the commitment that is franchising a business. While franchising your business is a brilliant opportunity for growth, expansion and profitability, it also requires a resource commitment to go through the development process and then the franchisor company is entering into legally binding commercial agreements with the franchisees so isn’t the right path for everyone.
We can help you establish if your business is suitable for franchising, using a variety of indicators. Firstly, your business should have enough capital to comfortably cover the upfront costs of starting a franchise. Generally, this means the business must be well established and have been running for a minimum of twelve months and ideally a couple of years.
The original business model should also be appropriate for expansion as a franchise model and the product/service you offer should be replicable by other parties. These are all things you should consider before beginning the process of franchising your business.
The Franchising Process
At The Franchise Company, we are highly experienced at helping businesses of all sizes navigate the franchising process. We will work closely with you from start to finish, to give you the support you need when moving into franchising. Our team of franchise consultants are highly experienced in the industry, and have years of experience as franchisors with some of the UKs leading franchise brands.
With The Franchise Company, you will have the same franchise consultant throughout the process, ensuring you feel supported and have an expert on your side who truly understands both your business and the franchise process. Our consultants take the time to establish what makes your business tick, so you can feel confident the heart and soul of your business will carry over to the rest of the network as you move into a franchise system.
Prove The Franchise Model
We’ll start by working with you to develop and prove the franchise model to ensure that the franchise model is the right one for you and your business. We’ll examine the viability of the business for a franchise model, by examining your business model and operations, as well as your finances and the potential for the longevity of the business.
The process of franchising a business also requires an ongoing commitment from the franchisor, as franchisees that join the business will be dependent on you and your success for their livelihoods.
The first stage in the development process is to spend time with you carrying out an in-depth Business Review – we normally do this on site with you at your business premises and this enables us to understand the business and assess its overall suitability for franchising. If everything is positive then we’ll use the information obtained during the Business Review to carry out the Franchise Design Work.
Design The Franchise Model
Once your business has proven its suitability for franchising, we’ll work closely with you to design a bespoke franchise model that suits the way your business works. We’ll spend time developing the details of how your business will operate and be structured as a franchise including the production of a detailed financial model to assess how the business will be structured financially and a corresponding operational model to ensure that your franchise has the best chance of success.
The way you run your business and what works for you are all vitally important for us to know when designing your franchise model, so that we can create a model that is bespoke to you. A franchise must be replicable and easy to follow for new franchisees, but you want to maintain the elements that make your business unique as well.
Document The Franchise
Once the modelling work is completed we can move onto the production of the franchise documentation. This includes a variety of vital documents,including the franchise agreement, the franchise operations manual, franchise prospectus and recruitment marketing plan, processes and materials.
Developing the franchise documentation accurately and correctly requires a deep knowledge and understanding of franchising and how it will work in your business to ensure that the core documents are fit for purpose and will enable both you and future franchisees to operate together effectively and successfully.
Our consultants are highly experienced in drawing up these documents so you don’t have to worry about your documentation both during the development phase of the franchise, and going forward as your franchise network grows.
Pilot The Franchise
Once you have all your systems and documentation established, you can begin to pilot your franchise. The pilot phase involves recruiting a select few franchisees who are committed to the company and passionate about the brand to act as the foundation of your franchise network.
Then we’ll create a feedback network between you, the franchisor, and your franchisees, to ensure that your network is progressing and succeeding within the established model. This is also the time when we’ll make tweaks to your documentation and model as required, to ensure that both parties are confident and comfortable in the business before expanding further.
Start Franchise Expansion
Once your models, processes and operations are well established and both parties are comfortable in their roles in the business, we’ll start to expand. As you add more franchises to your network, we are always happy to advise you and your franchisees, as well as carry out franchise reviews, franchisee training and coaching and other services if you require them as your business expands and develops.
Why Choose The Franchise Company?
At The Franchise Company, we are passionate about the potential franchising has for many businesses. Our expertise is showing you how to franchise your business, guiding and supporting you in the process of becoming a successful, profitable franchise network.
Contact us today to find out more about how to franchise your business, or to speak to one of our experienced consultants about the development of your business.