Once your small business has reached a certain level of success, you might be considering turning it into a franchise company. Not only will this boost your company’s revenue, but it also spread your business’s name. Read on for some information about how to get your business started as a franchise company:
1. Know Your Company’s Finances
Not every company is ready to become a franchise company. As a general rule of thumb, if your business has enough money that it will not go bankrupt when its second location fails, you are probably financially ready to offer your company as a franchise.
2. Understand Legal Boundaries
If you want to offer your business as a franchise company, the Federal Trade Commission (FTC) requires that you compose a disclosure document called the Uniform Franchise Offering Circular. A franchise attorney can help you understand business regulations and explain documents that need signing. Remember that starting a franchise company is not cheap, nor is it easy. But it can be very much worth the effort.
3. Know the Rules
As the owner of the company, you do have a lot of say in how each franchise location is run. After all, the business model each location is adopting is yours. However, you have to understand and be okay with the fact that you will not have total control over each location. Each franchise location will have its own owner, and he or she can decide things like when to hire and fire people. You have to be okay with relinquishing some power.
Biz2Credit can help you figure out the best path for your small business to take, and loan specialists are available to help entrepreneurs who might want to secure franchise funding. Visit www.biz2credit.com or call (800) 200-5678 for help.