The Foundation of your franchise
And lead your franchise to success
I also know that each of these steps must be followed in sequence. Each time a business person approaches me with the comment – “I have a franchise agreement prepared by my lawyer. Now please can you help me recruit franchisees?” I know that the money spent on that legal agreement will be torn up and thrown away.
Because there is so much information to be added which is not included in the draft agreement. Your Franchise Agreement needs to be specific to your new franchise group. Every franchise lawyer worth their salt should send you away until you are clear on what is needed before they embark on that Franchise Agreement – your Franchise Agreement will be the last thing you do.
So – what does need to happen before that agreement can be drawn up?
The four steps in the Franchise Success Path cover it all.
Develop the foundation of your franchise
First you need to become very clear on what it is you are franchising and what your franchise business structure will look like.
A signature of all great franchise groups is a strong brand. So, you need to make sure your brand and marketing will work for this new business format.
You will be creating at least two new businesses from your existing business or business concept. One for your Franchise Partner (franchisee) to service your customers or clients.
And one for you, the new Franchisor, to manage your franchise group.
So step one is to create and be very clear on this foundation of your franchise group.
Define the structural elements
One you are clear on what your franchise will be doing, how it will look and feel and how the franchised business will be structured, you will be in the position to define the business elements that need to change.
- Budgets need to be drawn up to look at those all-important fee structures
- Franchise territories need to be considered
- You will need to make sure your intellectual property is looked after through good corporate structures and trademarks
- And what about that absolutely essential support your franchisor business needs to give your franchisees so they are successful
- How about training when they come on board and as things change in the future (and they will change – faster than you imagine).
This list goes on…
And every stage probably needs input from a specialist with franchise expertise to make sure you get it right.
Comprehensive documentation and testing
Finally, you have the information to create the documents you need to create your franchise group.
- The Franchise Agreement
- The Franchisee and Franchisor Operations Manuals
These documents give you and your franchisees the information to delegate so they can do the job you ask gladly and well.
So once the documentation is ready, you can put on a pilot franchise (or more than one) to help you test the system.
Lead your franchise to success
Now you are ready to recruit franchisees and lead your group through the city, region, Australia and the world.
Recruiting franchisees is tricky. Franchisees –or rather your Franchise Partners are business partners who will have to perform within a clear set of rules. The process for recruiting them is different to employing staff or entering into an agreement with a traditional business partner. It will pay to learn about how to establish the process before you begin to recruit.
Am I in the right place?
The first step in any of our programs is to suggest you learn as much as you can about franchising. The positives, the pitfalls, whether your business will fit this model and above all to find out if you really want to grow your business through this exciting growth model.
We suggest you start by having a chat with Brian or one of his experts. We will listen to your questions and ask a few of our own and the knowledge we gain about you and your business will give our team a good idea of where you sit. We can then advise you on your next step and offer you options for action.
So, if you would like that chat…
- Sign up for a free book which will also give you a free consultation with us
- Give us a call on 1300 960 136
- Email us at firstname.lastname@example.org
- Or fill in the Chat With Us box
And start the process by organizing the first free consultation with Brian or one of his experts.