Creating franchises is one of the fastest and most effective ways to achieve the growth of a business,but it is important to be clear that it is not a simple process, as well as that it will not guarantee that the expected results will be achieved.
In any case, if you are totally determined to create a franchise of your business as a form of expansion, from AYCE Laborytax we are going to give you a series of tips that will be of great help to you to franchise your business.
1- Is your business ready to create franchises?
The first thing you should do before franchising your business, is to evaluate if it is really ready to create franchises,as well as if it is a business model suitable for it.
You should pay special attention to your business concept, which should be attractive not only to consumers, but also to potential franchisees. Make sure this is a business that can operate under the command of other people.
“A franchise is a system of selling products or services of a particular commercial firm, in an establishment of another owner, under a series of economic conditions”
You must also carry out an exhaustive analysis of the market,to know if there are competitors, as well as if there are potential consumers for the product or service you are going to offer.
2- Legal requirements
After checking that your business is ready to create a franchise, the next step you will have to take will be to know the legal requirements. Keep in mind that when setting up a franchise, they will not be the same legal procedures as when setting up a business in Spain from scratch.
It is also important that before exporting your business concept to other countries, you know what procedures you will have to carry out, as well as the local legislations of each country. Here it is important to have professional advice to ensure that all procedures are carried out correctly.
3- Decision making
When creating a franchise for your business, you’ll need to make important decisions that will affect how you operate as a franchisor:
- Franchise fee
- Franchise agreement
- Size of territory that each franchisee will get
- What geographical areas you will cover
- Training program
- Decide if franchisees will have to buy both equipment and supplies from you
- Profile of franchisees
- Marketing strategy
4- Hiring your team
One of the most important points is to get it right with the hiring of the team that will be responsible for attending and assisting the franchisees. Although the team will vary depending on the size and business model, you will need to have a trainer, a creative director, a marketing assistant and a computer programmer.
5- Size your central
To definitely become a franchisor, you will have to invest to prepare your central to face the challenges you will have to face in the future.
Sizing your company in the right way is fundamental to meet the new demands that will appear with the marketing of franchises,having to focus on marketing, but also on training, marketing, management, etc.
6- Sale of franchises
Once your business is ready to create franchises, your main goal will be to find franchisees who want to buy your business model.
For this there is the option of hiring vendors to offer you support,although it is a task that you can carry out yourself. One of the most effective actions to find franchisees is to go to fairs and exhibitions, through which you can place stands to promote your business.
Keep in mind that selling franchises is a complicated task, especially at first. That is why it is important that you have surrounded yourself with a professional, competent team that knows your business model perfectly,since in this way it will be easier for them to convince that it is a good investment.
7- Advise your franchisees
Finally, you must strive harder than ever to offer training and advice to your franchisees,as it will be key to the future of your franchise network.
“My job is to make the entire executive team good enough to be my successors” Steve Jobs
Making one business exactly the same as another is not only about getting them to have the same aesthetics, but they will also have to operate and manage in the same way,and for this, that the franchisees have been perfectly trained is essential.
It’s critical to make sure your franchises can offer the same experience to all customers– regardless of whether they go to one or the other.
You should also worry about boosting the sales of franchised points, highlighting aspects such as promotion, advertising, communication and marketing above the rest.
In short, if you are convinced that you want to create franchises of your business, it is essential that you first make sure that you are in a position to take this important step. Afterwards, it will be important that you have professional advice,that you are told how to franchise, and that you surround yourself with a competent team that can guarantee your clients the best experience.