Setting up a small business for franchising is not a small feat, but it can be extremely profitable if handled correctly, and if the market is right. There are several steps that should be followed to ensure all franchisees are set up for success from day one.
The most important tip we can give you regarding the process is to take your time. Setting up a business model for successful franchising should never be a rushed job. Take the time to think through the process from beginning to end. Think about details. What should the signs and other visual elements look like? What forms of marketing will you allow? What tools will you make available to franchisees for operations and training? These are all very important matters that should not be overlooked.
Do not offer your opportunity to every person that shows interest simply because they have money. Be selective in who you choose to represent your brand. Choosing the right people to run a franchise makes all the difference. You want someone who is going to be successful, because their success equals your success. You also want someone who will represent both you and your company well. Bad publicity from one location can reflect on every other location.
Finally, retain the services of an attorney for help in creating operation guidelines, getting organized, and making sure you and your assets are protected. In addition, try to find a mentor, and always be open to learning. Someone who has franchised and grown a small business with multiple locations can be a great source of knowledge. He or she will likely be able to offer insight that could only come from someone who has been there. Starting a franchise can be an exciting and rewarding venture when set up correctly.