Top 5 Points to Remember before Franchising Your Business
Franchising your business is certainly an excellent way to grow. However, without much of knowledge and experience it can be a serious mistake. Here are a few tips that will help you with the franchising process.
1. Choose Franchisees Carefully
Choosing the right franchisees is perhaps the most important task while franchising your business. Making haste can not only be useless but even harmful. Since the relationship between you and your franchisees is long-term, you cannot change your franchisees overnight if you don’t like them. Therefore due care should be taken.
Know from where your franchisees are gaining their funding and on what repayment terms. Your franchisees should also be ready to work within your i.e. franchisor’s system.
2. Consider Giving Training
Good training is always beneficial for both – franchisor and the franchisee. The first and foremost training should be about understanding the basic components your franchisees will need for daily operations. This will also ensure a smooth and fruitful beginning. Training will also help your franchisees ensure their employees have appropriate skills and a capability to face the challenges that are bound to come along.
Training will also minimize errors and your valuable time to correct those errors will be saved. This makes the franchisor staff more productive. And of course, training will increase profitability.
3. Strict Control
Control starts with the franchisor offering considerable help in running the business with an established marketing plan. Apart from this initial beginning, it involves several aspects for the franchisee’s operations: accounting practices, exact hours of operations, promotional campaigns and personnel policies, and so on.
4. Organise the Emulation
Emulation means a second system that copies the behaviour of the first. To ensure optimal profitability, your franchisees should copy your system as franchisor.
Spend considerable time to study and document the systems that have helped you in gaining success for your franchisees to enter and emulate. This is a very important step and without it, your company cannot gain success. It’s important for the franchisor to remember that they are not only selling their products or services, but also their system for success.
5. Have Clear Concepts
When you were just a business owner, it was fine to run on intuitions. But when you become a franchisor, you should have a definite plan, even for the smallest of your daily operations.
Your system should include every step and so, you should know your business’s ins and outs. If you don’t know it thoroughly, you can’t expect your franchisees to know it well. Once you know the concepts, you should make your franchisees aware of all concepts too.
So, have you started planning to franchise your company?