According to experts, it may take you between 4 and 5 months to franchise your business. It all depends on your location and where you want to offer your franchises.
Starting a franchise may seem like a great way to take your business to the next level. While franchising has done wonders for companies such as Chick-fil-A and McDonald’s, is it the right call?
To make an informed decision, it’s vital to learn as much as you can about this process. Don’t know where to start? Here are the top 5 things you should consider before franchising your business.
1. You’ll Need to Hire a Franchise Lawyer
Franchising a business is a complicated process that requires bringing experts on board. An experienced franchise attorney will guide you every step of the way and speed the process.
Make sure to hire a lawyer who possesses first-hand experience franchising businesses in your state. You should also tell your attorney about the markets where you plan to offer your franchises. Depending on local regulation, you may need to comply with other processes before selling your franchises.
2. It May Cost You a Pretty Penny to Franchise Your Business
When you open a franchise such as Kumon, it can cost you between $70,000 and $150,000 to get it up and running. Believe it or not, franchisees aren’t the only ones who need to pay a lot upfront.
Trademark registration, operation manual drafting, franchise registration, among other typical fees are some of the franchising costs you’ll need to cover. Keep in mind these fees may vary depending on your location and the nature of your business.
3. State Franchise Regulators May Impose Stringent Requirements
Depending on your location, your state franchise regulator may require you to follow a complicated process. States such as California, Hawaii, Illinois, and New York require registering a Franchise Disclosure Document with the State Franchise Regulator. An attorney can provide insight into the requirements you’ll need to follow to franchise your business.
4. Building a Brand Is Vital to Franchise a Business
What makes your business unique? Taking your industry by storm is the first step to building a successful business.
However, you need to also build a memorable brand to make your business model franchisable. If you don’t know how, you should recruit a marketing team to build your brand. Marketers will consider everything from your location to the potential franchisees.
5. You Should Develop a Pool of Potential Franchisees Before Launching
Completing the franchising process is the first step to become a franchisor. However, you need to bring franchisees on board to become a true franchisor.
While creating your strategy and following the legal process, you should develop a pool of potential franchisees ready to buy your franchise. It may seem difficult, but your marketing team can make it happen. These experts can advertise your franchise model and make it appealing to the ideal candidates.
So You Learned the Top Things to Consider When Starting a Franchise, Now What?
Starting a franchise can be the best way to take your business global. However, it isn’t easy nor cheap. Before pulling the trigger, you should consider consulting franchising experts such as attorneys and business development consultants.
These experts can provide insight into the potential of franchising your business. Remember factors such as your market, location, and nature of your trade can impact the potential of franchising your business.
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