Franchising is one of the most sought-after means of owning a business, especially for first-time entrepreneurs. For small-time business owners, it’s also an excellent avenue for business expansion. However, it’s not an easy process, and there are many things that you’ll have to learn to avoid business failure. Here’s how you can get started on expanding your business through franchising:
#1 Check first if now is the right time
Timing is everything, and the same holds true with opening your business up for franchising. If the timing is wrong, your endeavor will fail, and it can be harmful to the finances and standing of your restaurant. Ask yourself the following questions:
- Does your restaurant currently have a profitable market?
- Has your restaurant overly specialized its location, ingredients, and menu, or is your restaurant one that is easy to duplicate for other branches?
- Is your restaurant ready to be managed and handled by other branch owners who may not have any of your skills?
Answers to these questions should be on the positive for you to determine that, indeed, your restaurant is ready to be opened for franchising. If your restaurant is still focused on streamlining your processes or if it doesn’t apply to the general market, such as your food offers are eccentric or are quite pricey, then now might not be the right time for you to expand through franchising. To learn more about proper timing in franchising, click here now.
#2 Connect with a network of businesspeople or would-be businessmen
If you want your business to be chosen by aspiring entrepreneurs who are searching for the right restaurants to be franchised, then you need to connect with a network of people in business and make yourself known in the industry. Remember that you’ll be competing against other restaurants who may already be veterans in the franchise industry. Hence, it’s vital that you make your restaurant known to a bigger market.
#3 Know the legal requirements
One of the most tedious parts in opening up your restaurant for franchising is the legal requirements that you’ll have to complete. As you become a franchise restaurant, the nature of your business will change, and so will the laws that you have to comply with. It’s essential, therefore, for you to know about all these legal requirements to avoid legal troubles, which can be time-consuming and costly and can affect the success of your business.
Plus, entrepreneurs who are looking for businesses to the franchise will always have compliance with legal requirements as a consideration. So, for your business to be chosen, you have to make sure that you have complied with all these requirements properly.
#4 Create your business team
Franchising your restaurant leads to business expansion, which means that you have to expand your workforce as well. Don’t expect that you can do this all by yourself. You’ll need a reliable team to back you up so that all the processes from day one until you close your first franchise deal is successful. Your team can be composed of the following:
- Marketing analyst and expert to help put your restaurant up to the more significant market and a network of businessmen
- Lawyer to help you with the legal requirements
- Financial consultant or accountant to help you gauge if your restaurant’s finances are ready to take a significant risk
#5 Come up with your franchise model
Every business that opens up to franchising has its own business model that applies to the industry that the business belongs. A franchise model is a necessity, and this is what you’ll include in your website or other franchising forums. You’ll need the public to know about the following:
- Your franchising guidelines
- Your franchise fee and other costs such as initial investment and capital
- Services offered to franchisees, such as skills training and assistance for the first 6 months of operation
- Your terms and conditions of renewal
These aspects will comprise your franchise model and also makes up the bulk of the inquiry of would-be franchisees.
Conclusion
Remember that putting your business up for franchising is a major decision. You’ll have to think a lot about how, when, and why. This guide can help you make that decision effectively so that franchising will bring growth to your business. When done correctly, you can slowly work your way up towards franchising success.
