First things first, turning your business strategy into a franchise feels a lot like going into a new place with only half a map. You know your own store like the back of your hand, but how can you show someone else how to operate it? That’s a whole different story. Start with your “how to franchise a business.” What makes your brand stand out from the rest of the geese in the pond? You can’t franchise anything if you can’t bottle it. Write down everything, from the exact color of the paint on the walls to the reason behind your customer service handshake.
The next thing you have to do is fill out legal forms. It’s not just a signature here and a stamp there; you’ll be up to your knees in Franchise Disclosure Documents. Find a lawyer who knows a lot about franchises and doesn’t use a lot of jargon. You need to give potential franchisees your framework in small amounts so they don’t become lodged in their teeth.
The debate about money is hard, but it’s important. Figure out what the first franchise fee will be. Is it just a charge for handing up the ticket, or is it the ticket to a whole support circus? Plan out the royalties, and don’t make the percentages so high that no one can handle them or so low that your work gets lost in the noise.
Before you roll out the red carpet, make sure your systems are in good shape. A training handbook shouldn’t sound like quantum physics; it should sound like a recipe. Make cheat sheets and video guides. When new locations can’t copy your best practices right away, franchising generally fails.
Location scouting is what makes life interesting. Some people want to put their flag everywhere, but a smart tortoise beats a quick hare. Try one, then five. First, watch, then jump. Territory exclusivity can keep franchisees from eating each other.
Don’t ever skip support. Franchisees who are new want to talk to someone, cry, and celebrate. They’ll believe your counsel when storms hit if you’re there from the start. If you have to, give out marketing toolkits, a phone number for help, and even emergency supply drops.
Branding is something to think about. Your logo is more than simply a pretty picture; it shows that people can trust you. People should be able to see your sign from a long way away and know that they will have the same great experience no matter where they go. Don’t let new franchisees go off the rails with strange fonts or “creatively” colored menus.
The journey doesn’t end when you launch. Check, change, and visit. Yes, surprise inspections work, like when a parent looks beneath the bed for monsters. Find out which franchisees are doing well and why. Tell the rest of us about their tricks. Change is the only thing that stays the same, so keep your ear to the ground.
It’s not easy to run a franchise, but the reward of seeing your idea crop up everywhere makes the hard times worth it. Just keep in mind that every huge chain began as a single location with big plans and, thankfully, a clear set of instructions to share.
