30 Aug Tips on How to Successfully Franchise Your Retail Business
Franchising is a great way to expand your business and gain profits on low investment. Most people assume that you can only franchise a fast food chain because they’re the most visible franchise opportunity. That’s not always the case; because almost every business can be franchised if you plan it well. At The Franchise Institute, we recommend that you consider the following steps to successfully reach that goal.
Is Your Business Franchise Worthy?
Your first step should be to understand whether your business is franchise worthy and this is quite easy to determine. You need to consider the points listed below:
- Does your product sell well, even in a slow economy?
- Is your business healthy and profitable at present and is likely to continue operating successfully in the future?
- Do you have a system that can be taught to others?
- Have people asked you about franchising opportunities?
- Are the estimated costs of starting a franchise reasonable for you?
The answer to these questions will help you determine whether franchising is the right option for you.
Develop a Business Plan and Prepare Your Business
Once you’ve determined that franchising is the right option for you, you need to develop a thorough business plan. You need to make sure your business model can be replicated in different locations because customers would want a consistent experience with your brand. Before you take the step in the franchise direction, organise your internal structure and operations model so that it can be easily replicated by people who purchase the franchise.
Like your product, your marketing strategy should also be consistent because all branches of a franchise represent one brand. The franchise owners need to follow a set formula to make sure your brand is represented properly in the advertisements and marketing materials.
Trademark Your Brand and Products
When you sell a franchise, you sell rights to use your brand and products. You need to develop a good brand and make sure you have a solid logo to represent it. People will purchase your franchise if your brand presence is valuable; so it’s your most valuable commodity. You need to make sure that your retail business logo and product lines are properly trademarked. You should look at everything that’s unique to your business and register it because that would help you develop the right brand identity; and this includes:
- Names of product lines and logos associated with them.
- Images and official photographs of your products, including the packaging.
- Name and logo of your overall brand and company, along with your website domain name.
Hire a Professional
Turning your business into a franchise requires considerable amount of legal paperwork. You’ll need help from a professional with experience in this field to ensure everything is handled carefully. You’ll need a number of documents and information when you register your business as a franchise and this includes:
- Background information about your company and business model
- Franchise fees and relevant royalties, including the mode of royalty payment (monthly or annually)
- Obligations of the franchisee with regards to promotion and marketing
- Obligations of both parties with regards to supplies and equipment
You’ll need to cover this and other such points when you register your franchise. If you have the paperwork properly in place and define the roles of the franchisor and franchisee well, your retail franchise business would have a better chance at success.
If you want to know more about franchising or want some advice, call The Franchise Institute on 1300 855 435 or fill in this contact us form and we’ll reply as soon as possible.
Thanks for reading,
The Franchise Institute Team
1300 855 435