Starting A Franchise
Starting A Franchise is simple— but it isn’t easy. Much like venturing any path in the business landscape, starting a franchise requires advanced planning and impeccable strategy, followed by right execution, to grow and sustain in the long run. There’s a host of things that need to be factored before striding ahead and committing yourself.
Here are 7 broad steps that one should go about to have their foot set in the right direction:
Step 1- Is your business ready?
Not every business is ready for franchising – most of them aren’t even suited for this model. So before venturing this path, run things through different parameters to make sure yours is an establishment that’s ready to take a giant leap ahead. Do a thorough market research, understand the pros and cons of this model, look at your finances, and then prepare for the big change.
Step 2- Get familiar with the legal juggernauts
Adapting to the franchising model includes a wide range of legal juggernauts, right from registration to following the country’s various regulations. While you can hire professionals for assistance, you must also get yourself familiar with the entire legal paperwork process.
Step 3- Time to make some important decisions
There’s a wide range of important decisions that you are to make in this step. Consider your own goals and preference and then prepare the terms of your franchise agreement. Decide on the geographical area you want to cover, what will be the royalty percentage, the marketing strategy for your franchise and what kind of training will you offer the franchisees. Take a 360 look, factor everything and keep an eye on small details.
Step 4- Register as a Franchisor
Now that all is done and planned, it’s time to move forward with definite actions. Get together with the experts and create the required paperwork. Register your establishment as a franchisor.
Step 5- Build a reliable team
When you’re on the journey to create something very big, you need a strong and reliable team of like-minded people—there’s no other option. So when the registration is done, start making key hires and building an awesome team. Have directors, HR, and other important members of the staff first.
Step 6- Attract the prospects
This is possibly the most important and difficult part. Attracting prospects and selling the franchises. A simple approach is to understand the concerns of the to-be-franchisees and act on them via smart marketing strategies. Leverage powerful tools and social platforms to get your name out there in the market.
Step 7- Assist and support the Franchisees
If you’re planning to sustain your business for long, it is imperative that to have an excellent support system for the franchisees. Get them familiar with the products and other aspects of your business through the right training. Assist them in getting started and offer them a pleasant experience by addressing their problems and helping them grow with rich resources.
Of course, there’s a lot more to starting a franchise than the mentioned process. But these are the broad steps how one should go about in this direction to keep things quick, simple and efficient.
FRANCHISING YOUR BUSINESS BENEFITS
BENEFIT TO FRANCHISOR
- Multiple sources of revenue
- Easy Brand Expansion
- Reach to new locations
- Large manpower access
- Big profits
The Franchisors enjoy multiple and newer revenue streams, including franchise royalty fees, franchise fees, training fees, sales of promotional items, rebates from suppliers, and fees from services provided to franchisees.
BENEFIT TO FRANCHISEE
When compared to other setups and growth methods, Franchising requires much less capital. Backed by franchisor, Franchisee enjoys initial training, brand goodwill, and on-going support, which combines to reduce the hefty cost and make this undertaking much less costly than kictstarting an independent company.
OPPORTUNITIES
Given the surging trend in this industry, the opportunities that there is for the new and existing undertakings are remarkably positive. Both the Franchisors and Franchisees are on the receiving end of high-flying outcome. Following the basic franchising framework, the involved parties can swiftly stride towards the ultimate goal of higher revenue.
Too Many Opportunities—Are You Banking on Them?
A franchisor can exponentially expand its wings to new market and wider audience base without getting directly involved in the process. The investment required here is low, with few could-be-bumps in the early stages but a smooth journey in the long-run.
For the Franchisees, the opportunities are just as much to start a company, with less hassle and on-spot expert assistance. The chances of succeeding is much higher, followed by the increased return rate in the given time period.
With all being said though, Franchising is much more than just creating a company’s structure and leveraging brand’s goodwill to own benefits. Even for Franchisors, in the mix of upbeat opportunities, the stake is just as high to preserve their brand’s goodwill by picking the most qualified and dedicated franchisor. The need for reliable professionals and agencies for both the involved parties is essential.
Initial Development
Mentioned already, starting a franchise is simple—it isn’t easy. The real challenge is at the go when things are just taking off. Keeping the fundamental whats, hows and whys clearly sorted, both the Franchiser and Franchisees must have a definite, well written plan to keep the business running smooth and sufficiently.
This plan centres on who you are, what you want to achieve, who’s your partner, what’s your interest—why did you get into this business model? Answer these basic questions to shape your growth plan and strategies that sheer your next course of action.
A Sustainable Model with Low CAC
Franchisees must pay heed to how they can optimally use brand’s market goodwill to penetrate in the market with the least of Customer Acquisition Cost (CAC). After all, just because it’s there, doesn’t mean it’s easy to grab. Just because the brand or partnering company is a renowned name in the industry, doesn’t mean banking on its reputation is going to be easier.
For the franchisors, the initial development phase is equally important. Finding the right franchisee and carrying forward the business in sync with both parties’ goals and preference—it’s a thin line that the franchisors must walk on carefully. They must strive to foster a healthy relationship with the partner that’s beneficial for both.
To keep things sweet, simple and high-rewarding, having professionals by their side is quite important for the Franchisees and Franchisors. Growing and sustaining franchise takes time and right strategy, which subsequently requires experience and expertise.
OUR SERVICES
Like any good business, having the right kind of strategy makes a big difference in the success of your business. Our experienced multi talented team is here to steer you in the right direction.To make any degree of progress, a strong franchise strategy is an absolute necessity. At Franchise Alpha, our group comprehends the significance of spreading out that first block of achievement, and is set up to handle the test of finding the best strategy to develop your business.
At Franchise Alpha, our group of franchise experts have years of experience thus see precisely what requirements to go into a franchise operations manual to guarantee it is legitimately solid and fit for reason. We’ll additionally guarantee – we have an incredible comprehension of your business – as a component of our assessment procedure, we invest time with you, at your business area, looking at all aspects of your business to decide your practicality and give us the information we have to write a great operations manual documentation.
The franchise agreement is the legal agreement that creates a franchise relationship between a franchisor and a franchisee.At Franchise Alpha, Our team of legal consultants have years of experience and so understand exactly what needs to go into a franchise agreement to ensure it is legally sound and fit for purpose.
Franchisors can be better positioned to help their franchise system and give franchisees the knowledge to improve their individual businesses. This can help guarantee that performance across the system is raised and that all franchisees are independent and working effectively.At Franchise Alpha,the fundamental elements of our training programs are Supporting, creating, developing fruitful sustainable franchises.
Franchise marketing kits are a great opportunity to put your best foot forward and present a compelling case for your franchise opportunity. When done well, it builds credibility and makes your opportunity stand out from the rest. At Franchise Alpha, we ensure detailed information and presentation for prospective franchisees to attract right kind of franchisees and expedite the franchisee buying process. SUCCESS STORIES BRANDS WE PROVIDED STARTING A FRANCHISE SERVICES
One last thing.
So while you thought your team can brave all the imminent complexities on the journey of starting a franchise, many a times you will be stuck and you would require someone to help you through these troubles with higher efficiency and without burning holes in your pockets. You would require Franchise Alpha – Your Expert Franchise Consultant
