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Franchise your business

Written by: Nick Strong

Article Overview: Do you run a successful business? Could it be expanded nationally via franchising? We look here at some Q & A’s you need to consider before taking action.

Franchise your business

Q. I wish to Franchise my business. How do I go about it?
A. In six words - Protection, Research, Analysis, Preparation, Recruitment and Communication.
But there are a number of critical steps you need to take before deciding.

Q. What are the critical steps I need to take before choosing to Franchise my business?
A. These are to:-

Understand the realities of Franchising
Know the strengths and weakness of your business.
Determine the key 'wow' factor of your business which is unique to you
Ask yourself why would a Franchisee choose to take a Franchise from me
Q. What do I need to protect in my business?
A. It is essential to protect your Intellectual Property - such as your Trade Mark, Trade Name, Designs and Systems.

Q. What research do I need to undertake?
A. This relates primarily to three key aspects:-

Knowing your competition
Knowing the market in which your business operates
Knowing what competitive Franchisors are offering
Q. What analysis do I need to undertake before Franchising my business?
A. Here it is important to:-

Analyse your strengths and weaknesses
Analyse the past Income and Expenditure trends of your business
Determine what income a Franchisee can earn
Determine the Financial Linkages between you and the Franchisee
Determine your Franchise Head Office costs
Here it is essential to obtain professional advice regarding this analysis, as it is the determining factor whether it is wise and sensible to Franchise your business.

Q. What preparation do I need to undertake before Franchising my business?
A. Here there are a number of items which need to be produced, such as a:-

Franchise Information Pack
Franchise Recruitment Process
Franchise Operations Manual
Franchising Training Programme
Legal Brief prior to obtaining a Franchise Agreement
Q. How can you help me with Franchise Recruitment?
A. Here we can:-

Signpost you to the most effective Newspapers and Specialist Websites
Coach you in how to conduct the Interview
Q. Why are Communications so important?
A. To be successful in Franchising you need to build a Franchise Community with the emphasis very much on communicating throughout the whole Network.

Q. How can you help me with the tasks I need to undertake to Franchise my business?
A. We take a flexible approach to the way we help our Clients. We have the capacity and expertise to undertake all the tasks listed. Alternatively we offer inter-active consultancy and mentoring programmes whereby we work with you to show you how to Franchise your business. We also provide a comprehensive range of document templates and can provide you, in conjunction with Mission Assist, with your own Franchise Communication Portal.

Q. How will this flexible approach help me Franchise my business?
A. It enable you to 'buy-in' only the help and assistance you need and minimise the cost of setting up your Franchise.

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  Did you know: NIIT Franchise was present in Malaysia in 1997?
  Master Franchises Explained

Article Tags: critical steps, expenditure trends, financial linkages, franchise agreement, franchise information, franchise operations, franchise recruitment, franchisee, franchisors, income and expenditure, information pack, intellectual property, newspapers, professional advice, realities, signpost, six words, strengths and weakness, strengths and weaknesses, training programme



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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