4 Tips For Starting A Franchise
You've beaten the odds have successfully started your own small business. As you get busier, you may decide to open several additional locations. But the time will come when you will have to decide if you want to keep expanding and become a chain, or start a franchise where other business owners can purchase your brand concept. When done properly, starting your own franchise can be quite lucrative, and will allow your brand concept to grow without requiring you to do all of the work. If you are thinking about starting your own franchise, consider the following tips:
Ensure That You Have a Strong Business Model
Before you spend the time and money to turn your current into a franchise opportunity, make sure that you have a strong business model that addresses every detail of your type of business. Buying a franchise is a big financial investment, and investors want to know that they are purchasing something that has a high likelihood of being successful. If you can show potential investors how you have built your brand and client base, they will be more likely to want to be a part of your franchise.
Be Selective When Selling Franchise Opportunities
You have worked hard to build your company and its brand- don't ruin all of that by selling a franchise to any person that offers to buy the opportunity. A franchise location may technically be run by someone else, but it will still represent your company. You want to sell your franchise to people who have the skills to run a business, and are willing to stick with the core concepts that have made your business successful.
Plan On Providing Extensive Training
You have built your business from the ground up, so no one knows how it should be run better than you do. When you sell a franchise of your business to another person, it is very important to provide a comprehensive training program to help ensure their success. The cost of this training is typically included in the franchise fee. If you are able to properly train new franchisees, there is a higher chance of them purchasing additional franchises in the future, which can add a lot of money to your bank account.
Pay Attention to Your Franchise Locations
When a person pays a franchise fee, that gives them the right to run the business as their own, but they still have to follow the core concepts of your company. Since each franchise location is representing your business, check in on them often to ensure that it is being run properly. You may also want to consider hiring secret shoppers who will visit the location anonymously and report on the business practices being used.