When you first began your small business, you had to jump through hoops to prove that your idea had real business potential. Finding the perfect location and raising capital to finance your dreams took all of the patience you could must at the time. Now, it has been some years later and you realize that you may have a product or service that is worthy of its own franchise. Is the process to franchise my business the same as starting a business or will you have to jump through an entirely different set of hoops?
The good news about the franchising process is that it requires more brains than brawn for the person who is looking to start a franchise. You will be creating some of the hoops that the franchisee will be jumping through to help take your brand to the next level in its specific business industry. But, what it may require is the help of a franchise consultant. A franchise consultant can work with you in two distinct areas of the process. The first area would be in the scripting of your brand’s product or service description. The second area would be the process for finding and selecting the right person to franchise your brand.
Scripting your product or service
In this area the consultant will help you put together training manuals, operating guides, and franchise agreement contracts. This packet of information will assist your franchisee in the running of an efficient and successful business. Because by time you are actively looking to expand your brand, your current business plan should already be running at maximum efficiency. Your small business was the trial and error period of your product or service. The training manuals will give proper instruction on the use of specialized techniques to create the product or how to deliver the service. Operating guides will assist the franchisee on how to operate the business. Detailed descriptions of the daily, monthly, and yearly processes that go along with providing this particular brand to the public. And lastly, the contracts that you will need to officially ask someone to franchise my business.
Finding and selecting the right person
In your contract with the consultant there should be a section that includes how they will assist you in finding the right person or persons to become franchisee of your brand. It will be a grinding task, but that is what the consultant is there to do. You still have your current business to focus on, a consultant will work pretty much like a real estate agent. Once your business is on the market, then it is there job to drum up perspective buyers. They should be checking the references, financial information about how they will be raising capital, and whether or not they are a fit for your franchises business model. Typically the consultant will get paid for each prospect that actually becomes a franchisee.
So, in many respects, the process to becoming a franchise is easier than starting a small business, however, patience is still the main virtue that will be needed to expand your brand. You will be starting a new financial relationship which will require you to provide the guidance of a parent who is preparing a young adult for interactions with the world.