How to Franchise Your Business

Knowing How to Franchise Your Business is essential. There are many different types of franchises which a business owner may opt for. You will want to consider thebest opportunities that match your lifestyle,business and financial goals. Without know how to franchise your business you could spend a tremendous amount of time and effort trying to find the perfect franchise, just to never find it.

How franchising works:


A franchise fee is paid by the franchisee is paid to a franchisor in return for rights to open and operate a business under a franchise trademark and for training in how to operate a business. An initial franchise fee is paid by a franchiser for both the trademark and the training. In most cases once the franchise is started the franchises will continue to pay a royalty fee which is typically four to 10 percent of the sales performed by the franchise and for continued support and training.

When starting a franchise the franchisee is responsible for all the required capital to start the business and assumes all the risk for the future.

How to franchise your business:

Get a franchise consultant. This is the best beat when considering franchising your existing business or opening a franchise. The franchise consultant will devise a plan for you which ensures that you are going in the right direction.

Get a franchise attorney. There are many legal and business documents which you will be responsible for which are necessary for potential franchises, state and federal government entities.

Get to marketing. Once you have decided to franchise the next step is to get investors to come aboard.This is another area where your franchise consultant will help you. You can also read other franchise prospectuses to se their pitch to the marketplace to get ideas. You must, however, follow FTC rules in the creation of a prospectus.

Redefine your role. You will now be the CEO of the franchise and you will need to bring on a new mindset. Your role is much more now. It includes building excitement among other potential franchisees. You need to direct your focus towards marketing activities, attending events, supervising the UFOC and building connections.

Basic tenant of franchises include:

Credibility: Credibility is vital in order to gain franchisees.Uniqueness: Your must have some sort of uniqueness in your franchise.Straightforward operations. You need to have a business and system model that is fairly easy for the new franchisee to learn. Adaptability and demand. You will need sufficient demand for your product in a number of different areas.ROI. It is important that after paying the franchise fees that there is sufficient return on investment.Strength of management. The team of the franchise is crucial and a strong management team must be in place.

A franchise consultant / specialist will help you with all the information and direction as well as the process of becoming a franchise that is necessary. From the initial consultation service / appointment to the marketing plan, sales campaign and so on. It is essential that things be done properly and that you have a good, reputable consultant on your side. somekeyword the proper information for the best opportunities.