One way to grow your business is to franchise it. You should realize, though, that franchising is nothing like expanding or opening a new location.
It involves handing your business over to another person. You give someone else the right to open and run a copy of your business.
You must be willing to hand over some control and share your inside secrets to business success. This carbon copy of your business will represent your brand and can have an impact on your overall business success, so it is essential to be sure you are ready to franchise.
Are You Ready To Handle the Red Tape?
It is essential that you are ready to handle all the legal and regulatory aspects of franchising. You’ll want to hire experts, such as an accountant and a franchise contract lawyer, who will be able to guide you through the mechanics of franchising.
Do You Have a Good System?
Forbes notes that you are ready to franchise your business when you have a standardized system that you can easily teach to someone else. You have to be able to easily replicate what you do to pass that on to your franchisees. You need employee handbooks and systems manuals that you can hand to someone who can take those and run an exact replica of your business.
How’s Your Business Doing?
Forbes explains that you should not franchise your business when sales are down and your business is not doing good. This is not a way to turn your business around or breathe life into it. You need to wait until you have solid sales figures and steady business.
You want to pass on a business that is in good shape to franchisees. They will not invest if they don’t see this as a successful venture.
Is It Time?
If you answered these questions in the right way, then it probably is a good time to seriously consider franchising. Make sure to talk with your attorney and other experts to work out the details before you start advertising to potential franchisees.