Franchising is not for every business, it takes a certain system, market and business model in order to effectively replicate through franchising. For the systems that do fit the model of a franchise system, the opportunity for growth through franchise development can be significant and fast.
Businesses must always be growing, innovating, creating and building for new and additional ways to generate profitable revenue and get ahead of the marketplace. If not, a business is only biding it’s time until it falls out of position in it’s own marketplace. Franchising is such a tool that many business owners utilize to build and create innovative revenue generation through. In order for a business owner to franchise an organization, they must take the business through several critical stages of business development and then execute on a carefully planned franchise strategy. First, this means that a franchise business plan should be developed that appropriately defines the franchise program, the franchise expansion strategy and the business elements of the franchise program. These would include an appropriately defined fee structure for the franchise model, a well planned franchise fee that adequately covers the cost and investment in each new franchise partner’s training and support but also that takes into account the market place and fee structure of competing franchise systems.
Franchising is a new business and it requires the guidance, coaching and careful consultation of a qualified franchise consultant in order to effectively plan, implement and execute on a successful franchise program. Good franchises don’t happen by accident, they are planned, monitored, structured and designed for success. A great franchise consultant will not only provide the guidance and oversight for the planning and development of the franchise model, but also in working with the franchise program to implement and manage the franchise program.
Franchising is like a battle, it takes a great plan and business model in order to approach the market and to understand who you will be competing with and how best to strategize a market approach in order to capture the most market share and ideally take a leadership position. Accurate and complete legal work needs to be completed through a well written and defined Franchise Disclosure Document and appropriate franchise state registrations. Then the franchise operations manual should define the operating process and the franchise training model and finally the franchise marketing program should completely build the concept and plan for how best to attract and sell franchises to potential partners.
Franchise consultants are available for growing companies that are considering this process of franchise development. If you are considering whether to franchise your business, these steps should be taken with the guidance and management of a qualified franchise consultant.
For more information on how to franchise your business: (800) 610-0292.
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.