You have a business that runs like a well-oiled machine, and you want to make it even better. Does franchising come up in your dreams? Well, get ready, because franchising isn’t as easy as throwing a coin into a fountain. It’s more like putting together a puzzle with 10,000 pieces. First, see if you can copy what you do now. Be truthful with yourself. It might be hard to copy success if you have a great donut store that only you can run with your secret how to franchise a business.
Next on the list is to write everything down. No joke, everything. Think about trying to bake a cake with a recipe that you can’t read on a napkin. No one wants to guess when it comes to company plans. Make sure you know how to use your systems, processes, supply list, and teach your team. You should even write down how to clean the coffee pots. Selling is all about consistency.
Now, think about the law. Not the kind where you read an article online and hope for the best. You will need lawyers, and yes, they will cost you a lot of money, but if you don’t get them, you may end up tripping on a rake barefoot. Write your Franchise Disclosure Document (FDD). You’ll want to go back to physics class after reading the FDD for 15 minutes, but it’s necessary and protects you and your future partners. It specifies out your fees, training, duties, territory rights, and more. You may think of it as a business partnership prenup.
Improve your workout program. Think about someone buying your franchise. You don’t want them to phone you every hour, like a cat lost in a maze. Think about everything, from employing workers to dealing with customers to getting in touch with suppliers. Make it so obvious that even your grandma could understand it while she knits.
So, how much is it going to cost? Be honest about how much the initial investment will be, how much the monthly royalties will be, and how much the marketing fees will be. Buy a cup of coffee for another franchisor and ask them questions. You can learn more in 15 minutes of real talk than in hours of reading online manuals.
You will need to promote your franchise chance. Those days are over when a classified ad would do the task. Make a website. Talk during trade shows. You may hold webinars or discovery days. People aren’t just buying a business; they’re putting their faith in you. So, make your pitch better. Get ready to answer a lot of inquiries, from the silly (“Can I serve sushi at my burger shop?”) to the smart.
Don’t just say yes to the first person who applies because they have a wallet. Check carefully. Do they see things the same way you do? Do they work alone or lead a team? Keep in mind that one bad fit might hurt your brand for a long time.
And when you eventually open the doors to franchise #2, get ready. Like in a game of whack-a-mole, problems will come up. Just accept it. Help your franchisees, keep listening, change how you do things, and maintain your system up to date. That way, everyone wins.
Franchising can make your brand huge, but it takes a lot of work, patience, and a steady touch. Be curious about every stage and be ready to laugh at your mistakes. The puzzle may seem hard, but if you finish enough parts, you’ll have a work of art.