Here are the seven key steps I discovered over the past three decades working in the industry. Each step is explained in simple easy to understand points.
Some steps will take time and careful consideration and we do recommend you engage some experts to help you with the trickier bits. But in the main you can do this work yourself using our cost effective templates.
You can take as long as you like to go through each step. The length of time will depend on the time you put into the work involved, the complexity of your business and your business experience. Most people take 12 – 18 months to franchise a business but the process can be accelerated and I have seen it all in place within six months.
Here are the steps:
Learn about franchising: Before you begin, you need to know how franchising really works.
Feasibility: Is your business suitable for franchising and do you have the business skills, the confidence and personality to make it work.
Develop the franchise documents: A series of documents need to be prepared to help you develop the business as a franchise, guide the franchisor and the franchisee in their responsibilities and form the legal agreement between the two parties.
Develop the franchisor business: Before you can begin, you will need to get the various parts of the franchisor business up and running.
Establish a pilot franchisee operation: You will need to either systemize your existing business or develop a new one to show that you can operate the business successfully as a franchise outlet before you sell a franchise to a franchisee.
Recruit Franchisees: Advertise, select carefully and sell the first outlet to a separate franchisee. Keep going until you have as many as you need.
Manage your franchise business into the future: Now you are up and running your job is to provide on-going training for your franchisees, make sure they keep the brand alive and that they are performing well. Critically, you are also responsible for continuing to develop the franchise business as a whole, keeping it current and fresh.