So, you believe your firm is ready to grow outside your own backyard? Franchising might be your ticket to the stars. Imagine this: one morning you’re making coffee in your cafe, and the next year you’re on vacation while other people run copies of your store. Is it tempting? Let’s get rid of the jargon and break down the basics of how to franchise.
First, take a look at your business. Can it be done again? Is it possible for someone else to use your formula and receive the same results? If your charm is what makes you successful, it might not work without you in charge. You need systems instead of just going with your gut.
You should write everything down. How to hire, how to market, how to keep the mop after closing, and even how to make recipes. This makes your business a model. It’s a playbook, not a puzzle with missing pieces.
After that, pick a model for your franchise. Single-unit, multi-unit, or area development? There is no one answer. Take a moment to look up these structures. It matters; if you make the wrong choice, growth will stumble like shoes that are undone at a race.
Talk to a lawyer. It seems like a lot of fun, like a tax audit, but this step is worth its weight in gold. You must have a franchise disclosure document (FDD). Make changes to it so that it works with your business and the regulations where you want to grow. Don’t be cheap. Cutting shortcuts here is like putting up a skyscraper on sand.
Now let’s talk about branding. Franchising makes your brand’s presence bigger, for better or ill. The last thing you want is for your cousin to embarrass you in a town you’ve never heard of. Set rules and follow them. There are restrictions concerning uniforms, logos, and store layouts. If you can be flexible here, your “brand” will stretch till it breaks.
It’s time to sell your idea. Who would be the best franchisee for you? Imagine that individual. Do you want experienced business people or eager beginners who are ready for a break? Make a process for screening. If you choose the wrong partner, your dream could turn into a never-ending job of putting out fires.
Next is training. Don’t think “I’ll figure it out as I go.” Until you put on the headlights, new franchisees are driving in the dark. Meet in person, discuss your playbook, and rehearse in person. Do it again. You should know them inside and out.
Support isn’t only something you’d like to have. It’s a life jacket. Make sure you can talk to each other. Consider check-in calls, site visits, and a central place to get help. Keep in mind that if your staff feels lost, franchisees will lose their way.
It’s hard to find the right price for your franchise. If it’s too high, only a few people will bite. If you go too low, you’ll get anyone with a pulse. Take into account recurring royalties and money for marketing. Tell franchisees exactly what they get for their money. Being open is better than making big promises.
Never forget about marketing. Putting together money from several franchisees for a joint marketing campaign is powerful. Be imaginative with local ads, online presence, and grand openings, but keep a close eye on the results.
Growth isn’t the same for everyone. Some people see their kid grow quickly, while others see it grow slowly and steadily. Think about things often. Make little changes to your model and support systems depending on what works and what doesn’t.
When you franchise, you go from being a hands-on operator to a coach and mentor. That’s a big jump. Mistakes will happen. Accept them; they are your best teachers. Keep making changes to the formula. You might end up in charge of an empire, remembering the days when you ran a one-man band.