Do you have a great small business that you want to expand?
You might consider becoming a franchisor, especially if your business is at that stage when it’s ready to grow. Here are some things you should know about starting a franchise company:
1. Know The Legal Requirements
Any company that wants to offer franchises in the U.S. is required by the Federal Trade Commission (FTC) to write up a disclosure document, known as the Uniform Franchise Offering Circular. Further, individual states may also have registration regulations that must be met. It is best to hire a franchise attorney to ensure that these documents and requirements are completed accurately. Remember—starting a franchise is not cheap, but it will hopefully pay off handsomely in the long run.
2. Keep With the System
It’s important for every franchise operation that each franchisee learns the system for successfully running the business. Design a comprehensive training program that will fully prepare any franchisee for a successful operation. Additionally, each new franchise will need its own marketing plan. Outside consultants are often a great source of expertise for this.
3. Have The Appropriate mindset
Remember that franchisees are not the same as employees. If you simply issue orders, you may be met with quite a bit of resistance, so it’s best to treat each franchisee as more of a team member than an employee.