How To Franchise Your Business
There is no doubt it. Franchising is one of the fastest ways to grow a business. The recent spate of franchises in the country has seen branches of many businesses double, or even triple, in a just couple of years due to their decision to open up the business to franchising.
For one, franchising allows you to build a store you will earn from without using much of your resources, both managerial and financial. The cost of setting up a store, as well as that of running it, will fall on the franchisee’s shoulder. As a franchisor, however, it is your responsibility to supply your franchisees with a working business model and the training and assistance needed to get the business going.
You’re convinced that the franchising system is a good way to expand. What next?
1. Evaluate. A crucial first step in the franchising process is to gauge if your business has franchising potential. Factors like the track record of your existing unit, your actual operations, and management capability to train and transfer concepts are key. If your product easy to replicate? Are your systems easy to absorb?
2. Study your options. Is franchising the right vehicle to grow your business? How about co-branding or distributorship?
Once you are sure that you’re business is ready to undergo franchising, you are ready for the next steps:
1. Consult a franchise specialist. While research and business savvy may give you a general idea of how to handle to franchising of your business, it would be safest and smartest for you to approach a franchise specialist like GMB Franchise Developers, who have the experience and the expertise in these types of business expansions. In fact, aside from helping you evaluate your business viability as a franchise, an expert may even help you with the entire process from creating the operations manual, to the franchise agreement, to the franchising package.
2. Join a franchise group. There is no better way to learn about franchising that from the experiences of those who have already undergone the process. Members of the Association of Filipino Franchisers Incorporated (AFFI) will be glad to exchange notes with you on how best to start and run franchise operations.
3. Set up a test franchise unit. Coming up with a model/small-scale franchise unit will help you anticipate possible problems you may encounter in operating a franchise. Store operations, delivery, inventory, training etc. should be dealt with hands on to identify possible rough spots.
READY, SET, RECRUIT!
Having gone through the entire process of getting your business ready for franchise, it is now time to get people interested in owning a piece of your enterprise. The best ways to market franchise opportunities are through your company’s website, your franchise association’s website, print advertising in industry publications, and by having a special section on franchising in all your marketing collateral.
Have a hotline ready and dedicated solely to answering franchise inquiries. Make sure the person answering the phone is competent and has a complete grasp of your franchise offering, as this will be your initial encounter with the prospective franchisee.
A good way to weed out the serious investors from nuisance callers is to require a letter of intent before giving out too many details about your franchise package. Once they have made their intention known formally, that is when meetings can be set up to further discuss the details of the franchising package.