It is the dream of millions of business owners to one day turn their company into a global franchise, a name known in every country throughout the world. Evolving into a franchise is a great opportunity for any business to grow and there are countless examples of those which have become incredibly successful.
However, franchising doesn’t guarantee success for every business and there are many ways in which it can fall through. Consider all the following factors first if you’re thinking about starting up a franchise or turning an existing business into one.
Finances
Existing profitable businesses are the most likely to make a successful franchise by continuing their success on a much larger scale. In order to do this you will need enough starting capital, best generated by having at least three businesses which are already making a decent profit.
You will need to enlist the services of an experienced accountant, if your business doesn’t have one already, to produce audited statements too. This should demonstrate your ability to create a franchise as you decide whether to set up a new company to take over the franchising or use the current business.
Legal Aspects
There are many legal aspects involved in setting up a franchise which differ from creating your own business. The business format franchise agreement is the most common legal agreement by which the business owner grants licenses to franchisees for a fee to run their own business by using their brand.
When looking to set up a franchise enlisting the help of a qualified solicitor with experience dealing with the legal side of franchises is vital. There are different laws covering every country and state, so you must be aware of these if you really want to expand to Europe or further afield.
Systems
It will need to be easily possible to replicate the systems used so successfully in your current business on a larger scale and with others in charge for your franchise to work. A plan of action is required along with appropriate and effective training programs for other managers.
Using other companies for specific elements, such as logistics firms like InXpress, to deal with particular elements will make running your franchise a lot smoother process. Marketing plans are necessary so new customers and clients will be on board with the franchisees too. It involves a lot of work but if you’re ready it can be well worth the effort to create your own franchise.
