How to Franchise Your Business

By: Jason Petrina



If you have grown a successful business, but you desire more growth, you should consider franchising your business. The growth potential for franchised businesses is unlimited, and franchising is considered to be the fastest way to grow a business. Franchising a business is easier than you may realize.

First, you need to determine if your business is a good idea for a franchise. If you are doing well, there was obviously a need for your type of business in your community, you’ve found a way to differentiate yourself from your competitors, and you have found an overall successful way of doing business. If there is a need for your type of business in other communities, the business can be set apart from other competitors in those communities, and if your way of doing business can be copied, your business is ripe for franchising.

There are many different ways to start your franchise operation, but you must be prepared. You will need a Uniform Franchise Offering Circular, a franchise agreement, and an operating manual for your franchisees. Getting these things developed will take a little time, but your lawyer and accountant will be a great help to you. There are also many companies that can help you franchise your business as well.

There is much more to it than this, however, there is also the question of money. What is your brand worth? How will your brand be used? Are there specific vendors that your franchisees will be required to use? All of these things should be covered in the UFOC, the franchise agreement, and the manual – but these are decisions that you must make first. How much will your franchising fee be? What about royalties? For someone who has never franchised a business before, these types of decisions can be quite difficult. Using a reputable franchising company, however, will get you through these decisions with ease.

Once you are set up and ready to go, you will next need to find people who are interested in your franchise opportunity. These people can be found through the classified ads of local newspapers – in locations where you feel a franchise would do well. They can also be found through entrepreneur and business publications. There are also many databases online, where you can list your franchise opportunity for a small fee.

Once you are set up, there really won’t be much of a problem finding people that are interested in your opportunity. The problem will be in determining who will be allowed to purchase a franchise for your business. Remember, your brand name is at stake. You need to develop some sort of criteria ahead of time, such as the money they have to invest in the business, educational requirements, business experience, and other factors that will help ensure their success.

It is important to realize that the success of your franchisees is important to your own success. Their success – or failure – is a direct reflection on your business model. You know the model works, with the right person working to make sure that it works. But if someone buys a franchise, and they don’t follow the guidelines, or they don’t operate in a manner that ensures success, they will fail – and their failure will be viewed as your failure no matter what. This is why it is important to have criteria that potential franchisees must meet.



Jason Petrina is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com