Franchising is one of the few sectors capable of resisting the crisis and on which to focus in order to restart the economy of our country. For a company or a future entrepreneur, franchising is an extremely convenient sector: it allows, in fact, much faster growth than an expansion direct. Furthermore, the financial charges are shared among all the affiliates, who with their contribution contribute to the growth of the network. Here are some steps that will help you to grow 100 franchises in 3years
- Franchising is a proven route to achieving rapid business growth. But becoming a franchisor is not a sure way to succeed, especially in this highly competitive economy.
- However, many business owners dream of seeing their brand name everywhere and creating a network of franchisees throughout their country, region, or even the entire world. When the correct concept is franchised effectively, it can be a very good expansion strategy that does not require a large capital investment.
- Your concept most successful franchise concepts offer something familiar, but with a different twist. The concept should be striking to both clients and potential franchisees. Also, the business must be repeatable by other people and not be something that only works under your command.
- Check your finances: Many successful franchises start from a profitable business and try to replicate the success in other locations.
- Do market research: Don’t trust your instinct that your business will be successful in the country. Study the market and confirm if there are potential consumers for your product or space, as well as room for new competitors in the market.
- Prepare for the change: Becoming a franchisor means that you will have to be indifferent activities than you were doing owning your business. Now, you will mainly be dedicated to selling franchises and advising franchisees. In addition, you must renounce part of the control you had before franchising.
- Evaluate other alternatives: Before franchising, consider other options. Depending on your situation, a slower growth model, like including partners, may work better for you.
- Know the legal requirements: In order to legally operate under this model; you must create a Franchise Offer Circular. This document contains certain information about the business, such as financial analysis, the operating manuals, and a description of the franchisor’s experience.
- Make the important decisions about your model: while preparing all the paperwork, you will have to make certain decisions about how you will operate as a franchisor. The major points to consider are The franchise charge and royalties, the franchise contract, the size of the area that you will give to each franchisee, what geographical region you will cover, the type of training program, whether franchisees must buy equipment or supplies from you, The profile of franchisees, What will your franchise marketing strategy, If you will offer master franchises
- Hire your team: In your preparation as a franchisor, you will generally need a team that will be in charge of assisting the franchisees. For example, you may need to hire a trainer, creative director, marketing assistant, and developer to install the software and systems on your network.
- Sell franchises: Now that you are in business as a franchisor, one of your main activities will be to find franchisees who will buy your concept. One option is to hire salespeople to support you, although the task can be done yourself. You can also attend fairs or expos and set up stands or hire the services of independent agencies to help you find investors.
- Selling franchises is difficult: The people in charge of sales must know your business perfectly and be able to tell a good story about it and why it is a good alternative to invest.
- Advise your franchisees: As a franchisor, you have gone through quite a few stages to reach this point. But it is in this when you begin to support your franchisee network, where you determine whether the chain will succeed or fail. Your training programs and the support you provide are the factors that will create equity in your control, ensuring that the brand offers a uniform experience in all its branches.
- At the same time, you will require to start promoting your chain to boost the sales of your franchises. Many franchisors miscalculate the significance of marketing support to the success of franchisees.
