Franchising
Define the Business Concept
If you are clear about what you want to franchise your business as a form of expansion, the first thing you should do is define or conceptualize the model correctly, in this way you will be clear about what you want to sell to future franchisees.
Establish a Strong and Attractive Image
You must carry out an image manual, since your franchisees must follow the style that you impose, and all franchise units must have a similar appearance. This manual should include: the use of illuminated signs, stationery, uniforms, advertising material, vehicles, etc. Although the most important thing at this point will be to register the brand, logo and slogan in question before anything else and have all the documents in order in terms of rights of use and ownership.
Registration in the Register of Franchisors
Another essential issue before starting to franchise your business is its registration in the Register of Franchisors to have all the necessary permits in order as soon as possible.
Create a Franchise Center
You must create a central headquarters to give the necessary support and sufficient technical assistance to your franchisees since it will be easier to market, operate and manage your franchise network in this way.
Design a Solid Financial Model
You need to be able to show prospective franchisees that it’s a good deal for both you and him. One of the first questions that arises for an investor is how long it will take for him to recover the money invested, you must also analyze what economic benefit you will obtain for having converted your business into a franchise.
Organize the Legal Issue of the Business
When creating a franchise system, each franchisee must sign a franchise agreement with the franchisor, so it is very important to have it well defined before starting to franchise. It will establish the rights and obligations of each party, therefore this document must be carefully prepared, addressing all aspects of the business, among others: fees to be paid, validity of the latter, renewal clauses, territory, obligations of the parties, aspects of intellectual property, sanctions or fines that may arise, causes of termination, assignment and transfer of the business, etc.
Write the Necessary Operation Manuals
These manuals will serve as a guide for franchisees to operate their business according to the standards established by you as a franchisor. For this reason, they must be correctly written, being necessary that they be didactic, easy to read and implement and that they are up to date with the modifications that are made to the business model.
Work Closely with Your Franchisees
The support and technical assistance and the constant training by the franchisor are essential elements for the success of the franchisees. You must think and document perfectly what type of training you are going to offer your franchisees, where it will be carried out, and who will pay the expenses.
Build a Wide Supplier Network
When setting up your business, you must determine what is needed to function, products, services, equipment, etc., so you will need to contact suppliers at a local or national level to obtain the essential elements for the entire franchise network.
Now that you know these steps, put them into action to be able to franchise your business and obtain great benefits. If you have any questions, contact one of our consultants who will be able to help you achieve your business goals.
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