franchising process
The first thing that needs to be done when thinking of franchising is to develop a sound plan. This plan must take into consideration the numerous issues confronting a new franchisor: speed of growth, territorial development, support service, staffing, and fee structure. Larger companies need to address more complex issues such as channel conflict, anti-trust and resources allocation issues.
After which comes the need for proper legal documentation. The franchisor will need a franchise contract to protect them from different issues. Basically, there are literally hundreds of different business issues that must be address in a good franchise agreement. And the decisions that they come up dictates the franchisor’s success.
Then, franchisor must develop a highly developed operations manual. This manual must contain not only the systems to be used, but also the checklists, policies, procedures, and tactics that will allow these systems to be uniformly enforced.
Lastly, franchisor must learn how to market and sell franchises. They must learn how to attract the prospective buyer and know the necessary materials that will help them make a sale. It also needs to be educated in proper sales, disclosure and compliance technique.
Related posts: