When is the right time, opportunity, or conditions to franchise your small business? Franchising is a great way to share your simplified business processes with other potential entrepreneurs, as well as earn great money in the process. However, franchising is not a simple process, and there are many considerations you should make before you set up your business as a franchise.
Here are three important rules you should know about franchising your business:
1. Choose a Strong Business That Fits a Proven Franchising Model
Franchising is not new. Franchising models and paradigms have existed for decades. The trick to succeeding as a franchisor is to choose a business that is in a proven franchised industry.
For instance, internet businesses are relatively new to the business world. Although internet business have proven to be successful and are expected to continue growing, they have yet to prove themselves as good franchising opportunities. Why buy someone else’s internet business structure when you can simply create your own from proven models?
Good franchising industries that provide good opportunities to franchisors and new entrepreneurs are the following types of business:
- Fast food
- Restaurants
- Specialty food
- Specialty retail products
- Health and fitness products
- Lodging
- Auto products
- Cleaning and maintenance products
2. Make Your Business Easily Clone-able
If your business is in the right industry, it could be a good franchise candidate. If you want to successfully franchise your business, it must have a model that is easily re-produced by franchise buyers.
Your franchise business must have a manual that others can understand and be able to follow explicitly. For instance, if you are selling cupcake franchises, your franchisees must be able to make the exact same cupcake from your recipes.
3. Good Communication with Franchisees
Remember, it is YOUR business name and business model that is on the line. Make sure that those who buy your franchise are operating by the book. Keep in good contact by sending regular correspondence. Maybe even drop in for “spot checks.” Operating by your business name is a license and a privilege. Be sure that those who use your business model are doing it right.
