7 Steps to Successful Franchising: Important Information

Updated: Mar 9, 2021

Everyone wants to be successful in life and the desire of a franchising business owner is no

different. However, becoming a franchisor is not so easy in this competitive economy. If you

can’t run your business properly, then you might have to resort to bankruptcy. Given below are

seven proven steps to successful franchising:

1) Start with a franchise development plan

If you think that your own business is in a satisfactory position, then the initial step you should

take is to compose a franchise development plan. This would work as a blueprint which has

many resemblances with a business plan and will take into consideration many factors such as your budget, your objectives, planned growth, SWOT (strengths, weaknesses, opportunities, and threats), supply chain, marketing plans, necessary features of franchisees, management structure, fees and royalties payable by the franchisees, and the quality monitoring procedures.

2) Get standard systems ready

Once you are done with a franchise development plan, you need to carry out a documentation procedure for all the tools and methods implemented in your enterprise which resulted in its accomplishment. You need to do it in an elaborate manner and if possible, can take the help of a professional to deal with this. You need to carry out a field trial of these methods with the first franchisee you’re going to work with.

3) Training and assistance

Once the documentation procedure is done, you also have to think about the training and

assistance that is required for turning your franchise business into a productive one. You also

need to calculate the expenditure that you have to incur for this training.

4) A franchise contract

Subsequent to the third step, you have to draft a franchise contract. To do this, you need to

discuss with an attorney who offers specialized services related to franchise businesses. The

terms and conditions laid down in this contract should be as unambiguous as possible so that

no tussle takes place between you (the franchisor) and the franchisee. The contract should

include features like proprietorship, expenses, necessary rules of operations, safety,

disagreement settlement strategies, roles, legal accountabilities, training, and assistance.

5) Drawing the right franchisees

As soon as the franchise contract has been properly drafted, you have to start drawing

franchisees to your business. There are different methods of doing it, including online ads,

newspaper ads, and periodical ads.

6) Setting up new franchisees

For this purpose, you have to figure out an orientation and grooming method for the

franchisee. This will help them become a useful component of franchise enterprise. You have to be conscious that substantial support or reassurance is needed in the beginning. You can also incorporate your existing franchisees into it. This will help you grow your clientele.

7) Handling your franchise setup In this step, you have to:

  • Evaluate the objectives and performance recurrently to take into consideration

peripheral elements

  • Introduce systems for keeping an eye on the franchise.

  • Be accessible to your franchisees without difficulty via email or telephone.

  • Go to all the franchisees frequently.

You can also contemplate setting up a franchisee board for assembling and talking about

concepts and exposures and get certain contributions into the functioning of the franchise.