ENTERING A NEW BUSINESS -
The bad news is a company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills.

THE FRANCHISE FEASIBILITY
An indispensable step before any franchise a business development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them. Franchising is not a way to raise capital, get rich quickly or expand a business with existing problems. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise owner with a sufficient profit.

FRANCHISE STRATEGIC PLANNING
A successful franchise development program begins with a solid plan – a foundation for franchising. Often there is little or no strategic planning with new companies entering the franchise industry. T More important than a business plan is a strategic plan – a vision of the franchise program together with a limited number of concrete, achievable action steps.

FRANCHISE DOCUMENTATION
If your company made doing a good job at the planning stage its number one priority, franchise documentation goals will be apparent. Proprietary assets (like recipes, formulas, methods, branding, operating techniques and customer information) need to be identified and protected. A catchy and appropriate name, logo and tag lines are registered as trademarks or service marks.

A franchise operations manual and franchise training program are developed, often from scratch, to impart business day-to-day operating skills to franchise owners as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted or edited with a particular focus. Certain topics, chapters and policies used in manuals for company-owned locations, for example, are entirely inappropriate in a franchise environment, creating significant franchise liability issues.

Finally, and only after all of the above are underway, a Franchise Disclosure Document (FDD), similar to a securities prospectus

, is prepared by a competent franchise attorney. Doing it correctly and with a balanced, fair perspective can save going to the courtroom later. Using a boilerplate or online FDD template will almost certainly guarantee a visit to the courtroom down the road. Since these visits cost hundreds of thousands of dollars and up, they are not cheap and far out weigh the cost of doing it right to begin with.

Training the Franchise Management Team -
When the documentation phase is over, momentum gathers as the exciting implementation phase begins. This is where the sparks begin to fly as franchises are sold, new franchise owners are taught and trained, and opening assistance is provided. It’s also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.

The reason: most new start-up franchise management teams have not been trained in how to properly operate their new business, nor can they afford to hire a six-figure, salaried person with franchise management experience. A more practical solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based.
Tags: How to franchise, Franchise My Business, Starting a Franchise
Comments

Franchising is  a great way to expand your business. It gets you added capital to grow your business with other peoples’ money.  It also helps you grow your business with others managing the additional employees. This is a great way to grow while leveraging other people’s talents and money.

Franchising is almost a no-brainer. Do the math, it works. Franchising is a smart and focused path to expand into markets  that may have been previously restrictive due to location and time restraints. And, people that live in these areas may want to own a business and feel more comfortable with an established business plan. Check out franchising today.

The first thing to do when planning on franchising is to carefully examine your own business model. Ask what made it successful? Was it the location? Was it the niche in filled in an area? Was it the concept? The true answer may be variations of all three. But can you help a franchisee find these market conditions in other areas so they to can be successful? If you answered yes than your concept may be worthy of franchising and you need to reach out to a franchise start up agency.

One of the top franchise start up agency in Georgia is located in Marble Hill, Georgia. Tom Rather owns and manages How to Franchise .org . If you need help Tom is one of a handful franchise consultants in Georgia that can be of assistance in helping an entrepreneur successfully develop a franchise properly. He work all over the United States but his office near Atlanta Georgia gives special relevance to entrepreneurs looking to franchise in the State of Georgia.

Tom helps you through all the necessary paperwork and planning that goes into developing a franchise. He also gets all legal documents properly signed by an attorney so you can trust his work is done properly.

If you are a entrepreneur in Georgia asking how to franchise a small business; you should just ask Tom.

How to Franchise

For some entrepreneurs, franchising offers the most effective avenue for growth. Others business owners, however, jump into franchising too quickly and the results can be devastating.

So how do you know when it’s right decision and time?  You begin by asking the right questions and answering truthfully about your current operation.

Is my business profitable?

Franchising is never the method to turn around a business that needs help. The first question you need to ask is whether or not your business is successful. If it is, then franchising may be the most viable option for growth. However, if the business is experiencing financial challenges, then now is not the right time to begin franchise development?  You should just postpone your idea of franchising until the business improves. During this period you can work on improving your model and offerings.

Can my concept be reproduce at another location or market?

The success of a franchise depends on the effectiveness of being able to properly duplicate the business model over and over at other locales. Since there are a lot of variables that goes into making a business successful such as location and competitive issues; it is a good idea to test your concept by opening additional locations. If these entities are successful then this is a good indication that your concept is indeed valid for franchising. Multiple locations also let you know if there are any pitfalls in your model that may need work. This will help make it a smoother transition when you begin to sell franchises.

Franchise Proof

Are you able to document your success in a manner to demonstrate the effectiveness of your system? By keeping good records to show cash flow; this will give strength to your offerings. Franchisees usually make one of the largest investments into starting a new franchise in their life with the exception of housing. So documentation including news articles are very helpful to gain credibility.

Am I mentally and time ready to franchise?

The most important question to ask oneself is whether you and your business are ready to franchise. The decision to franchise will have significant consequences for your business and even your personal life. It will require much of your time and energy, as well as the time and energy of your top employees. Unless your business can survive without your constant involvement, then it might be best to put off franchising, at least for a time. However if the answer is no your business can survive without your attention then its probably time to talk to a franchise start up agency. Also remember franchising is a lot of coaching and mentoring this can be mentally challenging. If you look forward to assisting others than the time may be right for you to begin franchising.

Visit our website to learn if franchising is right for you.