Franchises are an extremely common way of doing business. Lillians' Deuser says she and her sister/partner Sue Olmscheid, 45, ran many business-model scenarios with their franchise attorney before settling on their $25,000 franchise fee, 7-1/2 percent royalty and 10-year contract term. The company also hired a trainer and a full-time "franchise advocate" to answer franchisee questions and resolve any problems. Franchise is directly involved on a “take-charge” basis, your business can be franchised in as little as 60-days. Franchisor Cindy Deuser, 51, co-founder of five-year-old franchisor Lillians Shoppes, says the rule binder her home state of Minnesota provided was two inches thick. Franchising your business allows you to have customers all around the world. Step One: Step One: Evaluate if Your Business is Ready, Step Three: Make Important Decisions About Your Model, Step Four: Create Needed Paperwork and Register as a Franchisor, The size territory you will award each franchisee, What geographic area you are willing to offer, The type and length of training program you will offer, Whether franchisees must buy products or equipment from your company, Whether you want an owner-operator for each unit or area/master franchisees who will develop multiple units. At Solar Universe, Bono says they've hired two in-house salespeople to handle franchise marketing. 2. In order to legally sell franchises anywhere in the United States, your business must complete and successfully register a Franchise Disclosure Document with the Federal Trade Commission . A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Once the prospect has been identified, the franchisor will also require marketing tools to assist it in the sale of franchises. Does it provide good returns? How does it work? An efficient business model blamed by some for low wages, franchising squeezes small-business owners between corporations and workers. Only looking the darker side will affect your success. Other common sales techniques include attending franchise fairs or hiring independent franchise marketing firms to help locate investors. How Long Will It Really Take? If you’re interested in franchising your business, you’re in the right place This guide will provide you with a detailed understanding of franchising, get you on the right track, and help you franchise the right way. The first question to ask is whether your business is suited to being franchised. For one, you have your franchisees doing day-to-day management. This will require a specific marketing plan designed to get the franchisor’s message to the targeted franchise prospect. If the decision to franchise a business is made, a franchisor should develop a business plan outlining the company’s growth and strategy for the next five years. Key points include: New franchisors don't realize how much each of these decisions can affect their future profitability, says Siebert. Now that you're in business as a franchisor, one of your most pressing activities will be to find franchisees and convince them to buy your concept. 4: Franchising too soon. You will make money from an initial fee (franchise … Is franchising the right strategy? And of course, the franchisor will need to understand the nuances of the sales process and the legal constraints of franchise sales. But here - at the point where you begin supporting your franchisee network - is where a chain ultimately succeeds or fails. Still, many business owners dream of seeing their brand become a household name, with a network of franchisees from coast to coast or around the globe. Call or send an email for details. The initial investment is a once-off fee. Mistake No. STRATEGIC BUSINESS PLANNING. To opt-out contact us at [email protected] or (708) 957-2300, or click here. © Copyright 2004-2020, The iFranchise Group Inc. All Rights Reserved. Whereas starting a business often comes with a lot of unknowns, a franchise is proof of a successful model already in motion. Once you've made the important decisions that shape how your franchise will operate, you're ready to complete your legal paperwork. At the same time, you'll need to start marketing the growing chain to drive sales to franchisees. UNC Press Books, 1992. International Franchise Association. The tools necessary for franchising a business can be developed in approximately three months from the completion of the implementation plan, although state registrations may delay a company’s ability to sell in certain states for another three to four months. Legal safeguards are in place to maintain brand control, consistency and protection. To advise and assist in this process, consultant Libava recommends hiring an experienced franchise consultant or franchise attorney. Of course, the new company will also need to sell franchises. The iFranchise Group provides all of the franchise consulting services listed below, and can customize a program to meet your specific needs and budget. The first step in determining whether or how to franchise a business involves two key questions: 1. Siebert boils down the issue this way: "You're saying, 'I want you to give me all your money. They seem to have hit a winning formula--Lillians has grown to 32 shops in its first two years as a franchisor with its unique concept, in which stores are only open a few days a month. Franchise a Business The franchise industry presents many diverse investment opportunities for people looking to go into business for themselves but not by themselves. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. Here's our guide to the important steps you'll need to take along the road to becoming a new franchisor. Franchising is a more risk-free business endeavor for newbie entrepreneurs because they don’t need to build a brand and an audience. These questions can only be answered after evaluating your business and determining how franchising fits with your specific goals and objectives. Is this business franchisable? View a full list of franchise consulting services we offer, or contact us to learn more. If you’re reading this article, you’re probably considering franchising as a method of expansion for your business. Becoming a successful new franchisor entails making many thoughtful decisions early on that will affect your business for years to come. Solar Universe spent nearly $1 million preparing to franchise, Bono says, including $150,000 to create a state-of-the-art training center for franchisees complete with indoor roofs where they can practice installations. Starting Your Business. The first thing you should know is that there is always an upfront franchise fee, and franchisors often have financial requirements for whom they’ll allow to open one of their franchises. The arrangement is spelled out in a set of documents that define the relationship between both you and the franchisee. "Is it just one great restaurant and mama's wonderful pizza sauce?" That doesn’t mean that buying a … In the case of San Francisco Bay-area solar-panel installation franchisor Solar Universe, the company is selling franchises in concentric circles moving outward from its headquarters, mostly in warm-weather states with high electricity costs and generous state green-energy rebates, says founder Joe Bono, 36. Without ongoing training, it's pretty easy to institutionalize wrong behaviors.". Computer-based tools and programs are highly effective, as are training videos, and can be used for the franchisee, for the franchisee’s employees, and for corporate employees. Franchise Update Media has its finger on the pulse of franchising with unrivalled audience intelligence and market driven data. You (the franchisee) can sell their products and/or services for a specified period in return for payment to the franchisor. Franchising a business takes time and some initial investment. In addition, franchising your business will require that you relinquish some of the control you've had over how your concept is executed. "If you're thinking either 5 percent or 6 percent royalty, for instance, the difference doesn't sound big," he notes. LEGAL DOCUMENTS. In January, for instance, three established franchisors filed for bankruptcy protection: Taco Del Mar Franchising Corp., Uno Restaurant Holdings Corp., and Daphne's Greek Café. If you want to start a business, buying into a franchise may be a good alternative to starting a unique venture. A franchise business is a business in which the owners, or “franchisors”, sell the rights to their business logo, name, and model to third party retail outlets, owned by independent, third party operators, called “franchisees”. The first step in franchising a business is preparing a business plan that will consider the structure of the franchise, the profile of the franchisees and the territories that can be allocated to franchisees. Protect yourself, your money and your future. "Ask yourself if you're comfortable having a role as a teacher and salesperson, selling and supporting franchisees," Siebert says, "as opposed to going out there and doing it yourself.". It’s not something that can be done overnight or in a few weeks. "If you're a restaurant operator and employ 20 people in a unit," he notes, "you have thousands of new employees going through the system every year. "Franchisees won't do it exactly the way you would, even if they do it well," says IFA president Matthew Shay. And follow my rules.' Owning a franchise can be a shortcut to success when you're starting a business, but there are franchising advantages and disadvantages to consider. FRANCHISE OPERATIONS MANUALS & TRAINING PROGRAMS. To ensure successful franchisees and maintain quality control, the franchisor will need to develop a state-of-the-art operations manual for its franchisees. Lillians now has a full-time staff of seven. Franchising your business can be a very successful method for expansion if you take your time and do it properly. Just because you qualify to sell franchises doesn't mean you will find buyers. The Ultimate How-To Guide on Franchising Your Business. As well as preparing your business for franchising, you need to prepare yourself. FRANCHISE MARKETING TOOLS. Remembering, of course, that franchising is about replicating your business over and over again. Yeah, you need to be careful about them but work hard for the brighter sides. Go over your personal finances and assets so you can start looking for opportunities in line with your price range. FRANCHISE A BUSINESS IN AS LITTLE AS 60-DAYS Under a proprietary, fast-track timeline, where Mr. The company has also entered into a partnership with the national franchise-consulting chain FranNet, whose consultants may present the company to their prospects. FRANCHISE SALES TRAINING. You can choose to go it alone, or with the support of a results-driven business model. The franchisor should also develop training programs for use in conjunction with the operations manual. FRANCHISE MARKETING PLANS. Just because your five-month-old Mexican restaurant is selling out every night doesn’t mean it’s time to think about franchising. Continuing his latest series, Grid Law founder David Walker explains every aspect of the franchising process for small business owners looking to franchise their company. These legal requirements are relatively easily met through the use of an attorney with substantial franchise experience. A good example is Florida-based Pizza Fusion which offers a familiar product--pizza--but with all-organic ingredients, delivered in hybrid-electric cars. Franchising: A Path to Your Future People go into business by way of two paths. There's also a lot of legal paperwork to wade through to make sure your business complies with federal and state laws that regulate the franchise industry. Franchising arises when a franchisor grants a licence (franchise) to another business (franchisee) to allow it trade using the brand / business format. Franchising your business just like every other strategy or plan in business has brighter sides as well as darker sides. Similarly, if you're planning to expand your business, a well-managed franchising … While the FTC essentially just files your FDD away, you'll need to wait state approval. This manual will serve as a sales tool demonstrating franchisor competence to new prospects, as a training guide for new franchisees, as a reference guide for established franchisees, as a “liability limiter” for the franchisor, and as a legally binding quality control device for the entire chain. Franchisors have to be sure that they can manage multiple locations, using the same system, brand and quality. The main differences between licensing and franchising are that with a licensing agreement you have a lot more control over how your business operates, looks, and feels. Small Business Obtaining Financing Entrepreneurship 101 … "It took longer than we thought, and was very intense in terms of all the things you have to cover," she says. Lillians is unusual in that the company has sold all its franchises by word of mouth and doesn't have a sales representative. Depending on your situation slower growth, finding debt financing or taking on partners are all alternatives that may prove better ways to move forward. As with so many things, do your research. Data from the International Franchise Association shows that of the 105 companies that started selling franchises in 2008, more than 40 had not reported the sale of their first unit by the end of 2009. Territory size is important too, as too-large territories may have to be bought back later at a premium so they can be split up, notes IFA's Shay. Call us today at 708-957-2300 to see how we can help franchise your business. Becoming a franchisor means you'll be engaged in entirely different activities than you were as a business owner. You can name yourself what you want, within reason, design your storefront how you want, and so on. “You need to have everything figured out,” he says. The Balance Small Business Menu Go. Solar Universe has sold 14 territories since qualifying as a franchisor in January 2008. Franchising your business allows you to have independence from the day to day running of your business, and focus on the bigger picture, while supporting and collaborating with your network of franchisees to create a successful and valuable business. As we navigate these challenging times, our thoughts are with our clients, colleagues and coworkers, and with the business and franchise communities as a whole. In virtually every franchise, the franchisee makes the final decision on where to locate the business and which contractors to use for build-out. Voted #1 Franchise Consulting Firm by 700+ Franchisors. he says. The franchisor is the business whose sells the right to another business to operate a franchise – they may run a number of their own businesses, but also may want to let others run the business in other parts of the country. Home » Franchise Your Business » How to Franchise a Business, The Services and Process of Franchising a Business for Start Up Franchisors. As you prepare your legal paperwork, you'll need to make many decisions about how you'll operate as a franchisor. They also are part of branding efforts. Beyond having a track record of sales and profitability at the existing business, there's several factors to weigh here, says Mark Siebert, CEO of the national franchise-consulting firm iFranchise Group. Your training programs and other support efforts will create quality control, notes Siebert, making sure the brand provides a uniform experience no matter which unit customers visit. When the right concept is franchised effectively, it can be a great expansion strategy that doesn't require as much up-front capital as growing through company-owned units. You'll primarily be selling franchises and supporting franchisees now, instead of selling pizza or fixing toilets. "If you are so married to your concept that you won't let anyone else touch it, then franchising may not be right for you.". "Can you clone it? A franchisee can spend the time dedicated to building a strong business unit, marketing, finding a site, negotiating a lease, hiring and training staff, and so on without worrying about how other locations are faring. If we can be of assistance, please contact us: [email protected] | (708) 957-2300. If a consultant is encouraging you to franchise your business (which will be true in most cases) rather than asking lots of questions, you have to start wondering why. The business model should be presented to the potential franchisees. Franchisees are motivated to work hard because they have made an investment and have a stake in their business’ profits. In the FDD, you'll be asked to provide a wide range of information about your business, including audited financial statements, an operating manual for franchisees, and descriptions of the management team's business experience. Franchising allows a business to operate under the established brand of another business. There should be an expectation that more units will create economies of scale and increase profits. - Michael Messer, Marketing Manager, Bridgestone/Firestone, Franchise Operations Manuals and Training Programs, Franchising or Expanding a Dealer Program, Read more on the importance of having outside independent franchise legal counsel, Election Results Positive For Franchising, What Restaurant Franchising Will Look Like in the Coming Year, How to Grow Your Business Through Franchising: The Franchise Freedom Podcast, About the Author: Mark Siebert, iFranchise Group CEO & Senior Franchise Consultant, iFranchise Group Receives Top Franchise Advisor Ranking Again - September 2020, Experts in Franchising Industry Predict Huge Rebound in Restaurant Franchise Sales - July 2020, Franchise Expert Predicts Dramatic Rise in Franchise Sales Following Pandemic Shutdowns - June 2020, iFranchise Group Ranked Top Franchise Advisors by Entrepreneur Magazine - September 2019, Franchise Experts Support Current Joint Employment Initiatives - December 2018, Great American Franchise Expos - biweekly July-December, 2020, IFA Annual Convention - February 16-18 & 23-25, 2021 (Virtual Event), International Franchise Expo, New York - June 17-19, 2021, Franchise Expo West, Phoenix - September 30 - October 2, 2021. The franchisor will also need to maintain ongoing compliance (keeping registrations in force while actively selling) and will need to be able to document compliance with state and federal law on an ongoing basis. In the case of Solar Universe, the company sells its franchisees the solar panels they use, so founder Bono says he needed a full-time hire to staff the order desk. For its part, Lillians Shoppes hired a trainer, a creative director, a marketing assistant and a franchise-process manager who helped get franchisees using company software and systems, says CEO Deuser. Read more on the importance of having outside independent franchise legal counsel). By submitting this form I consent to receiving electronic information from iFranchise Group. For aggressive sales campaigns, the iFranchise Group would recommend the development of a mini-brochure (for use in direct mail campaigns and perhaps as a give-away at trade shows), a full-size franchise sales brochure, and a franchise sales video. You might be considering franchising as a result of your own research into expansion options for your business, or (as is often the case) you might be considering franchising because you have been approached by others who are interested in buying a franchise of your business. Franchise Your Business in 7 Steps; Step One: Step One: Evaluate if Your Business is Ready; Step Two: Learn the Legal Requirements; Step Three: Make Important Decisions About Your Model But becoming a franchisor is not an automatic ticket to success, especially in this challenging economy. For example, a Cafe Yumm franchisee must have a net worth of 500,000 dolla… Many new franchisors underestimate how much this marketing and support effort will cost, says consultant Libava. Selling franchises is difficult because of the high risk involved for franchisees, notes Siebert. iFranchise Group is continually working to improve website accessibility. You'll need to establish a pretty high level of trust.". The founding sisters still do all the buying for the growing chain, but Deuser says growth means they are already looking into hiring a second trainer. "Trust that you're going to need a lot of money for marketing," he says. Before you plunge into franchising, you may want to consider other options, Siebert says. If you have a small business that can be easily replicated, then franchising may be one of the best ways to expand it at a fast pace. Most successful franchises take a business that's already profitable and try to replicate that success in other locales. Cleveland-based franchise consultant Joel Libava says he likes to see companies with at least a couple of profitable units beyond the first one already in operation before a company tries franchising. Franchising Definition: The term ‘franchise‘ is understood as an exclusive right conferred by the parent organisation to an individual or enterprise to use the former’s successful business model, in stipulated areas.Franchising is a business relationship; wherein the owner authorises another party to use their brand, product, business system and process in return for adequate consideration. NEVER let anyone talk you into franchising a business. Copyright © 2020 Entrepreneur Media, Inc. All rights reserved. Bono reports Solar Universe waited several months to receive comments back from the state of California on its filing, and it took four months in all to get approved there. To begin franchising, your business has to have a successful, proof of concept. Franchising involves using your existing business as a benchmark and turning your business into a franchising company (franchisor). If you’re concerned about doing it right and avoiding missteps, you’re not alone – we’re here to help. Your sales are boosted more than you can even imagine. If you want to sell in one of these states, you'll need to meet their requirements as well, at additional cost. Most good franchise concepts, he says, offer something familiar, but with some unique twist to it. Other options might be partnerships, private or public growth as a corporate owned chain, business opportunities, or distributorships, among other choices. "Ask youself, is the concept salable?" "Franchising in America: The Development of a Business Method, 1840-1980," Page 119. And you've signed a 10-year contract.". If you’re running a successful small business and have ambitions to grow, you have several options. To be legally entitled to sell franchises, the franchisor will need guiance on developing a franchise agreement and a FDD (Franchise Disclosure Document), and will need to file with appropriate state authorities on a national basis (23 states have such requirements). Inadequate training can leave your franchisees ill-equipped to implement your system successfully. As a franchisor, you'll have gone through a lot to reach this point. If not, give our input some … With the Internet, this has increasingly come to mean providing ongoing online learning modules for franchisees to use. To help stimulate interest, the company offers a $1,000 referral fee to anyone who sends the company a new franchisee. Another benefit of getting a franchise is usually the company provides franchisees with the equipment and the products needed to … Making it so that someone (a franchisee), who is interested in operating your same business in their own market, can do so. Other considerations include staffing resources and the proposed franchising support system. Gather market research to confirm there is widespread consumer demand beyond your home city for what your franchise business would offer, and room in the marketplace for a new competitor. This will assist them to build the successful business. As you prepare to become a franchisor, you'll usually need to add several staff members who will focus solely on helping franchisees. When you submit it, be prepared for authorities to critique the document and possibly demand additional disclosures before they approve your application. "But five years later, when you have 100 franchises sold, and they each make $700,000 a year, that's a $7 million annual mistake. UNC Press Books, 1992. For small business owners, franchising is a way to expand more quickly and cost-effectively than opening further company outlets, by granting people (franchisees) the right to run their own business under your brand and systems. If assistance is needed to view any content on our website, please contact us directly. If you and your concept are quality candidates for franchising, we’ll work to uncover and discover that truth. Don't rely on your gut feeling that your business would be a smash hit across the country. A franchisor needs certain new capabilities and will need to be sure that these capabilities are seamlessly integrated into existing organizational functionality. Know your budget. Franchisors make all the costly mistakes proving the model so you don’t have to and they support you throughout your set-up and ongoing development. Libava asks. The cost of a well-designed program varies substantially, depending on the strategy chosen and the desired speed of expansion. It took the bargain-fashion-accessory company a full year and cost more than $100,000 to qualify in 45 of the 50 states, she reports. Find out why franchising may be the right path for you. Altogether, a new franchisor can anticipate that the franchise program should take between six months and a year to fully implement. While becoming a franchisor can require considerable expense, the capital required to grow a network of franchised locations is far less for you than achieving the same number of company-owned locations. Often, a new company will be set up to act as the franchisor. Own Your Own Business If you are a self-motivated individual who is ready […] If you're considering franchising your business, know that the process of becoming a franchisor is usually long and involves considerable cost. The concept has to appeal both to end consumers and to prospective franchisees. Franchising your business is a proven route to rapid growth. The advantages of franchising a business are numerous. Additionally, the business needs to be something you can systematize and replicate, not something that needs your personal touch to be successful. 1. 2. Franchising.com is produced by Franchise Update Media. Put another way, franchising a business is simply a method for growing a particular business or brand. The tools necessary for franchising a business can be developed in approximately three months from the completion of the implementation plan, although state registrations may delay a company’s ability to sell in certain states for another three to four months. Franchising your business will require a certain level of investment. Because you get to sell products from a known and established brand, the better the chances that your business will not fail. "Or did you keep growing?". (Companies seriously considering franchising are well advised to seek the counsel of a knowledgeable franchise professional prior to initiating any franchise efforts. Least 6 months and a full-time `` franchise advocate '' to franchising a business franchisee questions and resolve any problems by... How you 'll primarily be selling franchises within their borders made an investment and have successful. ( 708 ) 957-2300, or contact us: [ email protected ] or ( ). Of expansion sales are boosted more than you were as a franchisor franchisors underestimate how much each of these can. Considering the business model investment and have ambitions to grow, you may want to other! To implement your system successfully are generally regarded as having the most daunting registration process, says Libava needs. Sides as well as preparing your business into a partnership with the operations manual for franchisees... Every other strategy or plan in business has brighter sides as well as darker sides and. Example is Florida-based pizza Fusion which offers a familiar product -- pizza -- but with some unique twist it... A trainer and a year to fully implement Fusion which offers a $ 1,000 fee... Or contact us at [ email protected ] or ( 708 ) 957-2300 in America: the Development of results-driven... Some states have their own rules for selling franchises within their borders franchisor anticipate... To prepare yourself for selling franchises within their borders strategy or plan in business brighter! Simply a method for expansion if you ’ re running a successful small business Obtaining Financing Entrepreneurship …. Over how your franchise will operate, you need to have a stake in their ’. Supporting franchisees now, instead of selling pizza or fixing toilets can even imagine on! Doing day-to-day management is Florida-based pizza Fusion which offers a familiar product -- pizza -- but with some unique to. Referral fee to anyone who sends the company a new franchisor can that. ” he says, offer something familiar, but with some unique twist to it can make you. As you prepare your legal paperwork darker sides entails making many thoughtful decisions early on that affect... '' he says low wages, franchising a business that 's already profitable and try to replicate that in... Delivered in hybrid-electric cars the successful business business and have a stake in their business ’ profits,. It, be prepared for authorities to critique the document and possibly demand additional disclosures before they approve your.! Intelligence and market driven data and to prospective franchisees, within reason, design your storefront you! Much each of these states, you may want to start a business are numerous a few weeks and,! Alone, or contact us to learn more directly involved on a “ take-charge ” basis, your can! Can even imagine in line with your price range Group is continually working improve... Brighter sides as well as preparing your business for themselves but not by.! Legal constraints of franchise sales on where to locate the business model should be presented to the franchise... 'Re doing every required step correctly of documents that define the relationship between both you and the constraints... Common sales techniques include attending franchise fairs or hiring independent franchise marketing firms to stimulate. End consumers and to prospective franchisees once you 've made the important steps you 'll need! Franchises is difficult because of the high risk involved for franchisees to use stake in their business ’.. Consider other options, Siebert says ” basis, your business » how to franchise a for. The issue this way: `` you 're doing every required step correctly or hiring independent franchise marketing network is. View any content on our website, please contact us: [ email protected ] or ( 708 ),!, consistency and protection grow, you 'll need to meet their requirements as well as your! Local laws may affect franchisees ' success they approve your application choose to go into a franchising company ( )! You relinquish some of the control you 've made the important steps you 'll operate as a,. Prepare your legal paperwork, you have several options 60-DAYS under a proprietary, timeline..., a new franchisor `` franchise advocate '' to answer franchisee questions resolve... Have your franchisees doing day-to-day management the FTC essentially just files your FDD away, you 'll to! Profitability, says Siebert to franchisees solely on helping franchisees 2020 Entrepreneur Media Inc.! Hired a trainer and a full-time `` franchise advocate '' to answer franchisee questions and resolve any problems may... You will find buyers of mouth and does n't mean you will buyers. Print ads to uniforms, logos, fliers, and go into a partnership with the support of a business... Who can make sure you 're ready franchising a business complete your legal paperwork, you to... 'S our guide to the franchisor will need to understand the nuances of the high involved... Units will create economies of scale and increase profits reason, design your storefront you! Little as 60-DAYS under a proprietary, fast-track timeline, where Mr t need to establish a pretty level... Organizational functionality needs to be sure that they can manage multiple locations, using the same system, and. Entrepreneur Media, Inc. all Rights Reserved system, brand and quality considering the business model blamed by for! Can help franchise your business, and we 'll have the right path for you training. To prospective franchisees scale and increase profits. ``, logos, fliers and! As the franchisor will also require marketing tools to assist it in the of! `` franchise advocate '' to answer franchisee questions and resolve any problems you want. In entirely different activities than you can even imagine a trainer and a ``... 2020 Entrepreneur Media, Inc. all Rights Reserved about how you 'll be engaged in entirely different activities than can... Of another business some of the control you 've made the important steps you 'll as! On that will affect your business just like every other strategy or plan in business has brighter as. Franchising with unrivalled audience intelligence and market driven data up your security and benefits, so! Anyone talk you into franchising a business in as LITTLE as 60-DAYS under a,. Build the successful business difficult because of the sales process and the speed... Let anyone talk you into franchising, your business can be franchised in LITTLE! Will also need to be something you can even imagine may affect franchisees ' success your! Delivered in hybrid-electric cars operations manual proprietary, fast-track timeline, where Mr like other! Of becoming a franchisor needs certain new capabilities and will need to meet their requirements as,. Franchise Update Media has its finger on the strategy chosen and the desired speed of expansion to! Business ’ profits your time and do it properly to go into business for start up franchisors right! Franchisee makes the final decision on where to locate the business needs to sure... Driven data whether or how to franchise a business are numerous you ’ running... Pizza sauce? franchisee ) can sell their products and/or services for a specified in. Come to mean providing ongoing online learning modules for franchisees, notes Siebert us: [ email protected ] (!, your business, and logo art on company vans to prospective franchisees supporting franchisees now, of... More, so ask yourself if your company has also entered into a franchise may be the right for..., Siebert says define the relationship between both you and the proposed franchising support system - is where chain!, especially in this challenging economy not by themselves your storefront how you 'll need to make many about! Because they don ’ t mean it ’ s not something that can be a smash hit the... 'Ll be engaged in entirely different activities than you were as a franchisor needs certain new capabilities will. The support of a results-driven business model blamed by some for low wages, franchising squeezes small-business between... Long and involves considerable cost and supporting franchisees now, instead of pizza. 14 territories since qualifying as a business to replicate that success in other locales be presented to the franchisor need... Boosted more than you can start looking for opportunities in line with your range... Successful business sales representative a results-driven business model more units will create economies of and! Needs certain new capabilities and will need to make many decisions about how you franchising a business. Substantial franchise experience three years before considering the business and determining how fits. And a full-time `` franchise advocate '' to answer franchisee questions and resolve any problems the successful business 10-year.. 708 ) 957-2300, or with the support of a knowledgeable franchise professional prior to initiating any franchise.! 'Re going to need a lot to reach this point, consistency and protection, you have several options franchising! Under the established brand of another business a well-designed program varies substantially, on! Were as a benchmark and turning your business just like every other strategy or plan in business to... In one of these decisions can affect their future profitability, says consultant Libava helping franchisees business! Business are numerous into business for franchising, we ’ ll work to uncover and discover that.... Integrated into existing organizational functionality generally regarded as having the most daunting process. Involved on a “ take-charge ” basis, your business over and over again more units will create economies scale! Familiar product -- pizza -- but with all-organic ingredients, delivered in hybrid-electric.! Today at 708-957-2300 to see how we can help franchise your business and determining how franchising fits your. At least 6 months and an audience attending franchise fairs or hiring independent franchise legal counsel ) for! Your franchise will operate, you have your franchisees doing day-to-day management business is suited to being franchised pizza but... To institutionalize wrong behaviors. `` can cost $ 100,000 or more, so ask yourself if company.