Franchising your business is a great way to expand quickly and increase sales, but the real question lies in the resulting success or failure. Whether or not franchising will be successful depends on you and your business model.These are some of the practices that can help when franchising a business.
One of the first “best practices” should be to consult the International Franchising Association (IFA), a top source for franchising. They are well equipped with experience and tricks of the trade to help business owners effectively and efficiently franchise their business. It is a community of franchisors who join hands, abiding by the code of ethics, and develop franchise relationships that prove beneficial when introducing businesses to the market.
A more personalized “best practice” includes knowing your business inside out. This working knowledge is vital because often small business owners work on intuition. Many feel lost when they opt to franchise since franchisors don’t and can’t work on intuition, they work by the book. Knowing what one wants and itemizing is essential, from books to supplies everything has to be given in the form of a plan to the franchisee. Learn about the legal issues that are involved in franchising and IFA is an invaluable source in this matter.
Knowing about the potential of your brand and business can help when franchising your business. Remember when growing an efficient business that growth is a very subjective and individualized perception. For some, it might mean intercontinental chains while for others it might be just a few outlets in a city. Having a definite idea about the extent of growth can help you achieve your goals within your time frame.
And lastly, a good “best practice” is to develop a system around screening franchisees. Having an eye for the right person comes with experience. You need to keep your contact with reality in check, as it often happens with over-enthusiasm of franchisees, excitement can be taken as substantial evidence for success even when there are no numbers to back up their excitement, thus creating a “positive” illusion.
Support your franchisees; don’t be too rigid because, in the end, they are also small business owners. The key is to maintain a balance and keeping your eyes open at all times.