Nowadays, franchising is regarded as an exciting marketing method. If it is properly structured and run, then both of the two parties involved in this business (franchisors and franchisees) will be benefitted from it. However, you should not take it as an easy task. When you are seeking guidance about how to franchise a business, you should understand that the entire matter should be handled with capital, skill and patience.
The time you would need to establish a franchise system and preparation marketing preparation may be three years. It may also take another three to five years before you begin to see net profits and the flow of the cash. You should consider the time span while figuring out capital requirements. When the network moves into net profit and you find it achieving maturity, then you would be able to get the returns worth of your investment and efforts.
Why you should consider franchising:
• Franchising involves a lot of advantages. Let’s check out the advantages:
• You can use financial and manpower resources of the franchisee for the growth of the network
• You have no need to be concerned with the day to day operation of each of the outlets
• Your organization can earn profit without any involvement of high capital risk
• The network would help to grow rapidly
• You would need to face less challenge regarding the staff as the number of the staffs is fewer
• Each outlet will have a management that will tend to motivate the franchisees and lead them to success
• Franchising provides wider and safe outlets both for products and services
• It helps the franchisors to service across the country through the network of the outlets.
Reflect these issues in Prior Franchising stage:
No doubt that franchising a business can really be a very successful way to expanding. There are some largest businesses that have applied franchising concept in order to finance and accelerate the growth of their business globally. In order to get success in franchising, you must consider:
• The system should be pilot tested with the outlets
• Your business should be successful and distinctive that can be counted as replicable
• Professional advice will be needed from solicitor, accountant, and banker and of course a franchise expert
• Write the operation manual properly and wisely
• The agreement must be composed by an experienced Franchise solicitor
• Selection of franchisees should be very careful and smart
• Don’t go for overselling and forecasts
• Assure the best training program
• Take care of the satisfaction of your franchising
• Assure that the franchisees would be able to maintain the standard of the business
• Ensure that your marketing strategy, advertising plan and PR is simply the best
After establishing a successful franchise set up, you should try to keep the spirit and success. The bond between franchisor and the franchisees is very important to make a franchise successful. You should build a proper understanding and communication with your franchisees. You should meet them individually and bring them together in a meeting in three months. Above all, before considering how to franchise a business, you should consider is your business ready for franchising.
Keywords: how to franchise a business
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