Information regarding how to franchise
For business owners thinking of taking that next big step and expanding their successful business into a franchise business, it can be a daunting task to know where to start. Franchise development and planning can be pricey and difficult to navigate if you don’t have the proper plan in place, but by breaking the process down into four manageable steps you will soon be on the right path for franchising success.
Franchise Law Issues
One of the first steps toward franchise development is putting together a document for your business called the Financial Disclosure Document, through the Federal Trade Commission. This document was once known as the Uniform Franchise Offering Circulars or a UDOC. This standard disclosure document is a requirement for all companies wishing to operate their franchise business plan within the United States. On top of this document, many states also have their own specific registration requirements and documentation in order to franchise your business within their state. The help of a qualified lawyer who is experienced in franchise law will prove invaluable when putting together these initial papers, making sure that you are following all the rules to the letter of the law, and legally protected from any contract oversights or missteps.
Get your financial accounts in order
You will need to prepare audited financial statements for your business in order to franchise your business. The disclosure of your financial health and accounting practices is legally required in order to get the approval of the FTC, and you will also need to decide whether you are going to create another company for your new franchise, or if you are going to use your existing business to carry out the franchise business plan. This is an area where an experienced accountant can be a great asset to your team, covering all of your financial bases and advising you on the way your business model will be structured.
Map out your franchise business plan
Before you can sell your franchise business plan you have to get all the details down on paper from training to products and services so that franchisees can work from your blueprint. You should create a training manual and program to show those considering a franchise purchase in your organization what they need to do to make their business a success, and set up a marketing plan for them so that they can get customers through the door. Also, you should start setting up a sales system to appeal to potential franchisees who will become the bread and butter of your operation.
Know franchising obstacles you will face
A key thing to keep in mind when thinking of franchising your business is that it won’t be the same as running your own independent shop. Franchise business plans are much different. In your organization, you are the head of the company and your employees will work within the guidelines you set up for them. However, as a franchisor, your franchisees are entrepreneurs and different from normal employees and you should not treat them as such. It is much more effective to practice the art of persuasion and negotiation with your franchisees then to try and order them to make changes; a lack of mutual respect between the two parties could lead to resistance down the road and unnecessary hassles.