HOW TO CREATE A FRANCHISE AND BECOME A FRANCHISOR
If you have opened a first store or even already have more than one of your own, there are two things: open a direct one multiplying your efforts exposing you to new business risks or move to the development of a franchise plan.
The franchise formula allows you to reduce commitments and responsibilities, to scale your business with the capital of third parties. So how to start structuring a franchise project? Here are the 8 technical activities required before launching your franchise format in a credible, competitive and legally structured way.
Step 1:
Register your brand (if you haven’t already).
In a franchise you will have to sell your trademark under license to future franchisees. To do this, as you can well imagine, you need your trademark to be registered with the Chamber of Commerce of your province, the procedure is not so difficult. If you have in mind a national development you can also avoid in this one to make a register it for Europe or World. There can be no franchise without trademark registration. Do it and then go to step 3 of our list.
Step 2:
Standardize processes to transfer them to affiliates.
Even if your business is already broken in, there is always room for improvement. The first step toward optimization is mapping and analysis. That is, understanding who does what and how the activities that bring you results are performed. Analysis, in which you will be supported by our team, will help you eliminate unproductive activities, focus only on those that bring you results, and create a standard. The “standard” will serve you, as we will see in Step 6, to create know-how that you can pass on to potential affiliates in your network, through the tool of the operations manual.
Step 3:
Develop the operational business plan.
A good business plan becomes your compass to guide you into the future. What happens to your business model if you have five / ten / fifty franchisees? What human resources will you need to have? What budget in marketing to invest? Most importantly, how much will I be able to earn? Make a detailed business plan for the medium and long term. Not good at this kind of thing? Get help from our team.
Step 4:
Make your affiliate strategy effective.
After the business plan, you need to work on another equally delicate document, which is the definition of your franchise strategy. This includes not only determining your fees and royalties, which is already a job that needs to be done very carefully (on this subject read the book, Let’s Franchise, pp. 69-77, for tips) order now . But you also need to define, for example, what services/products you will be able to offer your franchisees and in what manner. Quality of services that will ultimately make the difference in ticking off your competitors.
For the next 4 steps
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If you want to know more about how to create your own format from scratch or develop your franchise network, book a free consultation.
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