You may find this story on Business News Daily helpful: https://www.businessnewsdaily.com/5657-how-to-franchise.html
Depends on the State. In CA you need to apply and become approved to offer franchises. the best way to do this is to hire either a consultant or CFO who has taken a business through franchising.
the idea of franchising your business is a way to achieve faster growth and involves bringing an excellent administration.
Every business that plans to operate as a franchise start point of having an organized system of operation and management. Which must be properly documented.
As a standard business operation and controlled step by step, to ensure the same quality and service that the business matrix.
The initial cost should consider designing manuals administration, operation and marketing promotion.
The marketing plan to promote the franchise should at least include advertisements in magazines and attending trade fairs and exhibitions.
standardize your processes and adopt an efficient way to make it. unification and duplication results in franchising. of course there are steps in between, this is the general outlook of it.
This is an interesting question and one that I've been asked many times over the years. I suggest you start by asking yourself what it is you want to achieve with your business over the next 5 or so years and then determining whether franchising is actually the best strategy. It is only one of many ways to grow your business.
If you do head down the franchise path, there are a number of ways you can go about it, from buying templates online to engaging high-end consultants and lawyers. I would recommend you speak to a number of people who specialise in the development of franchise systems and get familiar with the terminology, their approach, the legal requirements and costs which can vary from 20 or 30K up to 150K.
In the meantime, there are a number of things you could be doing in your business to help move you toward being franchise ready - and keep you growing in the meantime.
Happy to provide more info if its of interest to you.
John Di Natale
Franchises can be very tricky, therefore research more about the product, the legalities, location. Its good that you have been doing it for a long time but remember you were an employee. There might be a lot that you missed but you will encounter as a business owner therefore further research is always good and non regrettable.
I would suggest to you that you first decide what franchise that you want to start. Once you know what that franchise it is you need to do your homework. Your homework is doing research on that particular company and request an information packet from the company. By doing the research you will find out whether or not if you and that franchise are a good match. Once you have done your homework on the company and decide whether or not you make a good match then you want to start on meeting the criteria for becoming a franchiser with the company. I hope this helps....
1 - you need a tried and tested concept
2 - you need a minimum of one year acountable history and profitability
3 - you need at least 3 years eithere acurate projections os one year plus 2 year financial projections
4 - you need a franchise concept
5 - you need contracts and manuals
6 - you need to know how you are going to support franchisee
7 - you need a hell of a lot of money
8 - you need a strong identifiable well presented brand
I looked into franchising my business and found that it was easier to do it virtually, on a national scope, which grew to global! If I were you I would start by either opening offices in targeted cities or handling everything virtually (less costly).
Franchise Gator will provide you top franchise start ups. In addition, the marketing backdrop will provide the up front investment opportunities. The information is provided by state and type of business. In addition, Seminars, webinars and upcoming conferences are available.
You didn't mention what kind of franchise or which one you want to get. However, there are many companies don't give franchise and the once give, check your experience, background, ability to pay in advance the franchise fee while having a good location and follow their quality of products, prices, buying merchandise from them- unless it is overseas. Follow the same standards, style, outlook, decor and royalty for years, some has certain periods, and subsequently visits from them. Please try to be very specific while asking this question to get the exact information. Pradeep Berry
Very carefully. I have had extensive experience in starting a franchise. This is not a paragraph answer. It's in depth information and needs to be analyse and have focus. I can consult you if you would like. Please contact me. I am in linkedIn Nigel William Cotton. Look forward to hearing from you.
Franchise businesses are 90% IP - eg processes, brand and trademarks etc - focus on the 3 P's Product-Process-Presence. The act of defining your process is most important as that controls the quality of your offering and without quality no amount of marketing dollars will help.
To attain the status of a franchisor you need to accomplish the following:
You need to establish a successful protoype
Your financials of the existing protype needs to be audited for the past five years
You need to have a very high level and experienced law firm and CPA firm that can assemble the offering documents as they must comply with the laws of each state that you desire to be licensed and offer your business model to.
You need to disclose customer complaints and any legal issues
If you had any of these isues, you need to offer the resolutions
You need to have a very clean background. This means no criminal record
These are just some of the things that you need to consider.
Starting a franchise system is expensive. You will also needs lot's of working capital as you will have to have a professional staff at a minimum to help you build the empire. You will require marketing materials and a very strong internet presence. You will require very strong human resource capabilities. This is quite a challenge when you would still need to be working your present business if you require the cash flow to live on.
I hope not to disuade you , just that you need to look at the concept very realistically, Franchising is not an easy path to riches.
One last thought, a potential franchisee should have the mental makeup and passion to build the business. Success will require much more than a cash investment.
Depending on your model you might be better off as a supplier or distribution model. I would need to know more about your business in order to give you better advice. Please feel free to contact me if you wish.
Interesting discussions here. First - don't do it yourself. Read up so you are prepared, but utilized experts! You don't want to start with affiliates and end up backwards into a franchise - all sorts of legal problems.
To franchise, first you need a successful reproducible business (it does not need to be an original idea). It sounds like you already have the success, now to the growth stage.
To turn this successful business into a franchise you need three things - legal, systems, marketing. You already have the systems and most of the marketing. This part can be easily tweaked to include others. The legal needs to be done right.
To keep your 15 years of hard work growing, don't trust your business growth to just anyone on the internet. You will want to use trusted advisers. I have a list of top notch people in the industry to refer to you.
Franchising is a great opportunity however it takes a lot of time and expense to set it up, market it. I set up a business who h cost $25,000 to set up. I study so many franchise websites that focus on start-ups.) A great start is research franchising Franchise Gator is a good website. Be careful there as companies out there that will contact you and sell you on their great system this can cost in excess of $80,000.00
Frandocs in Florida have a digital franchise package that is great I am not sure what. Wit everything you need. Elliott tell him Gil from Toledo sent you. If I can answer any questions for you please PM me. Best of success.
I think this is a very interesting concept. I left you a message on your RKCACasino Facebook page.
Franchising is a fantastic way to grow your business, however there are multiple considerations from the legal to marketing aspects. I've spent 20+ years in franchising and would recommend beginning with the International Franchise Association (IFA). Their website is www.franchise.org. If you decide to franchise, you will definitely want to be a member of this organization, which has thousands of franchisor members from all over the world.
Next, you should talk to a franchise attorney who can help you through some of the legal aspects of starting a franchise. If you wish to contact me off line, I can provide some referrals to you.
In addition, you will need to set up support systems for franchisees. When someone invests in a franchise, they will be looking for training and advice in every area of running the business, from marketing the concept locally to running the business. This requires a plan for how you will train, support, communicate with and visit your franchisees.
Finally, you need the key ingredient, which are the franchisees themselves. There are ways to do this that are tried and true, so you don't need to reinvent the wheel. I provide consulting in this areas and would be happy to provide a complementary assessment to help you think through the various areas. Again, I can put you in touch with excellent resources who can help you launch this concept the right way.
There is an incredible wealth of information available. The key to success is tapping into this knowledge to help you avoid some of the pitfalls and get started on the right track. Best of luck to you in this venture.
Franchising is a costly endeavor as their is complex legal documents. Seek out an attorney with experience in the field.