How To Franchise Your Business – Everything You Need To Know

Franchising your business can be extremely lucrative. It is one of the fastest ways to grow a concept. Suitable for a wide range of sectors, franchising is an exciting way to introduce your brand or idea to a potentially huge audience. KFC, Pizza Hut, Budget Blinds and Interim Healthcare are among the world’s top franchises. Your brand could join them. But, before you start dreaming of early retirement, it is worth knowing that creating a franchise can be complicated.

As a franchise expert with more than 14 years’ experience, I help people just like you avoid the common pitfalls that can finish an idea before it gets off the ground. I have been both a franchisor and franchisee, so I have seen the benefits and challenges from both sides of the coin. This brief guide will explain the main hurdles you will have to overcome to make your franchise a success.

The legalities of starting a franchise

In order to start a franchise you will need to ensure your paperwork is in order. As a rule, the minimum you will require is a standard disclosure document. This is actually more complex than it sounds. A typical Franchise Disclosure Document has to explain, in print, the inner workings of your business. Seek professional advice before putting pen to paper. Getting this right will put you on a firm footing for the future.

You will also have to consider the financial side of things. Make sure you have audited financial statements prepared. This is because you won’t be able to legally start a franchise without them. Professional help from an experienced accountant is essential.

Franchise systems and training

In order to launch a new franchise successfully, you will need to develop robust systems. Consider them the engine room of your enterprise. Develop every aspect of your business so that it can be easily standardised. Replication is what franchising is all about, so standardising everything is pivotal. The devil is in the detail. Make sure you prepare a comprehensive, clearly documented Operations Manual.

Just like the concept of your business, training must also be standardised. You will need to develop a credible training programme. High-quality training, delivered by qualified professionals, will help you sell your concept to franchisees.

Franchise marketing and quality control

Franchising requires two marketing strategies. One will be for your franchisees. A core message, strong product or service branding and compelling calls to action will be needed to drive customers to their businesses. Make it bold but simple enough to be replicated anywhere and everywhere. Think about what your business stands for. What makes it unique? The second marketing strategy will be needed to attract and recruit franchisees – and, of course, generate revenue. What makes your franchise worth investing in?

The key to everything in franchising is quality control. Whatever your franchise is selling, put quality at the heart of it. Develop processes that include checklists, policies and also procedures to ensure your Operations Manual is uniformly enforced.

Learn more about starting a franchise

Having the right attitude is the cornerstone of success in franchising. Being focused, positive and flexible is crucial. Expect to face challenges and be prepared to overcome them. If it all sounds a bit daunting, you will be pleased to know there is expert support available to guide you through the franchise process. I offer the Complete Franchise Package. It is designed to help you save time and speed up the franchising process.

It includes, among other things:

• A franchise model and blueprint
• An analysis of the potential competition in your marketplace
• A fully customised franchise website, optimised to increase online visibility. It also includes tools to help you make the best use of your analytics
• Legal documents
• Help to formulate your franchise Operations Manual
• A business plan and financial forecasts
• A marketing and recruitment plan

Find out what else my Complete Franchise Package includes. Contact me today on 07885 490266 or email mike@monkmarketing.com

Becoming a Franchisee – What you need to look for…  

You must make sure you are ready to take on a Franchise Business and are prepared for the hard work ahead and are willing to listen to the advice from your Franchisor. 

Do your research…You must research the industry you are interested in as well as all the potential Franchise Business’s in that field. 

Check them out thoroughly as to how long they have been trading. Are they profitable? How many Franchisees do they currently have? Contact 2 or 3 of their Franchisees and ask them how and what it has been like working with that brand.  

What territories are available and how is the territory broken down? Is it by Post Code, County or Number of Business’s in that area>

Visit the BFA (British Franchise Association) Exhibitions in London, Birmingham, or Manchester and spend the day talking to various Franchise Brands and bring back as much information as possible.  

Speak to your local Chamber of Commerce and get advice from them as they will have people like Mike Monk who can advise you… 

Meet with your potential Franchisor at their premises and have a check list of questions you would like answered…They will probably ask you to fill in an enquiry form before the meeting so you both have an understanding of each other.  

Ask to see financial forecasts and are they achievable in your chosen territory and check this out with some of their franchisees. 

How long is the Franchise Agreement to run for? Is it 3 years or 5 years and does it renew at the end of the term and under what guidelines? Will they charge a fixed Monthly Management Fee or a % of your monthly sales turnover and, if so, what %? When renewing your Franchise agreement for a further period of time is there a Franchise renewal fee?  

Should the Franchise be van-based, then find out if they supply the van ready for use and do you have to buy it or lease it for 3 or 5 years and if so what are the costs.  

Should the Franchise be retail-based then does the Franchisor help you in finding the right premises and at favourable terms?  Will they kit out the retail unit  in their corporate identity and if so is this an additional cost or is it built into the Franchisee Fee you pay upfront.? 

How much training do you get and for how long especially in the first year?  

Ask your accountant to check the figures with you and help you to draw up a Business Plan and only use a Franchise Solicitor to check through their Franchise Agreement and advise you on any difficult or contentious points.   

Does the Franchisor have a good website and are you listed on it or have access to it and if so how will that work? Do they give you an email address etc?  

Are you given Head Office support for Sales & Marketing or Setting Appointments.?

What level of support do you get from the Franchisor, are there regular meetings especially in the first year and do they supply all the stationery, brochures and business cards you need?

Ask to see the Operations Manual as this should have everything you need to refer to with regard to how the Franchise works and should be updated every year. 

 

Brighton Expo www.B2BExpos.co.uk/brighton   

Take a look at the Video from Brighton Business Expo https://vimeo.com/314265402 

West Sussex Expo www.B2BExpos.co.uk/westsussex  

Monk Marketing www.monkmarketing.com