Four Early Steps to Franchising Your Business
Posted on November 12, 2010 by My Franchise Law
Once you have completed the initial process to decide if your business is ripe for franchising (evaluating how your unique product or service will perform in the marketplace, whether there’s an existing demand, and if you are suited for the role of franchisor), there are several key steps to take next to help you get started as a franchisor. Here’s a rundown of the basics necessary to grow your business:
- Find a skilled franchise consultant: One of the smartest moves you can make to ease the transition from business owner to franchisor is to add a franchise consultant to your team. Consultants, along with your franchise attorney, can help you establish your initial business plan, help iron out any questionable details or omissions, and design the best proposal to present to the marketplace. In addition, they can assist you in finding the best franchisees to invest in your company, and successfully match you with partners who are more likely to be successful in maintaining your brand’s integrity.
- Hire an experienced franchise attorney: There are several legally-binding documents that will need to be prepared in order to put your franchise on the market. From the Franchise Disclosure Document to the final franchise agreement, a lawyer who specializes in franchise law will be able to protect you and your investors from potential contractual oversights or questionable clauses that could lead to expensive legal issues down the road.
- Devise a marketing plan: Once you have the legal documents in order, your next step is to market your business to potential investors. Creating the perfect marketing pitch and attractive franchise business plan will help you attract interested buyers. Your franchise consultant and franchise attorney can guide you in the right direction with your marketing materials and presentations.
- Rethink your priorities: As an individual business owner, you have probably been solely focused on your business’ performance. Franchising will require a shift in your mentality and priorities as you become the head of a franchised company. Not only will you be responsible for marketing and attracting new business, but also for training and supporting the new franchisees as they get their businesses off the ground. Finding the balance between your original business and your new role as a CEO can take time - but a solid business plan, with clear priorities, will help ease the transition into becoming a franchise owner.