Well take a deep breath and let it out. Ok, good. It has been said that franchising is not for the weak at heart. Truer words have never been spoken. But if you think that you have a business that stands apart from the competition, can make money and is duplicable, then maybe you have an opportunity to franchise.
To start with you’ll need to answer these key questions about franchising your business.
1. Can your franchisee be successful? It is very important for you to build a franchise system that puts the franchisee first. You’ll need to develop a strategic business plan that helps your franchisees succeed in every part of the business. Develop a scale from good, better and best on how they can grow. Know that an unhappy franchisee can negatively impact your future franchise candidates and therefore slow down your growth.
2.How easy is it to duplicate your franchise? You need to ask yourself if this franchise business can work in different markets. Be very specific about what it will take to duplicate your successful work. Most of all, think about the person who will become your franchisee and what skill set and attitude they need to successfully run your franchise. Simplicity is the key to franchise operations. If your franchise is to difficult to run it will be hard to find the right franchisees that you will need to grow.
3. Do you have the right skills to be an effective franchisor? As a franchisor you will now become a recruiter, trainer, educator, motivator and leader of your franchisees. The franchisees will be looking to you as the expert in helping them grow their business. It is not easy to hear negative remarks about the brand that you have developed, but a strong leader has great listening and communication skills. Make sure you have them on day one.
4.Are you ready to work with business partners instead of employees? Your franchisees are not employees. By law they have been granted the licensing rights to operate your franchise concept and must follow the franchise agreements that you have written for them. However, they are not hired help but should be seen as a working partner. Your relationship with these franchisees will either make or break your brand.
5.Do you understand the financial rewards of franchising and the timeline? The selling of franchises is not where your reward will be. As you begin to build your franchise brand keep in mind that the money that you will make in selling your franchises should be reinvested back into your franchise system so that you can market, sell and support more franchises. Being a franchisor is a long term investment as you focus on the success of your franchisees and the royalties that will come with their ability to grow the business.
6. Will franchising help you achieve your true business goals? Maybe. It is important that you speak to many experienced individuals that have been in franchising for ten years or more. Here is a list the people to interview.
• A current franchisor of a franchise company
• One or more current franchisees of a brand
• A supplier to a franchise, like food or special products
• A franchise attorney
Don’t forget your goal is to see if franchising is right for your business. With the right leadership, business model and capital you could be on your way to creating the next Massage Envy Spa® or McDonald’s® Restaurant. Franchising, in business for yourself but not by yourself.
All the best.
Phil Mettra is the CMO of Legacy Franchise Group in Scottsdale, AZ. Legacy is focused on helping new franchise startups get into and succeed in the franchising industry. They also work with existing franchise brands that want to increase their brand sales and development in growing their brand here in the U.S. and internationally. With over 100 years of franchise experience on the team, Legacy Franchise Group is a trusted partner for any franchise that wants to grow the right way. Contact Legacy Franchise Group at 949-466-3166 or email at [email protected]