Franchising can provide exciting and fun opportunities, but brands must be prepared before they take the plunge.
Many companies see franchising as a natural next step in their evolution. This allows them to hike their reach exponentially and ultimately generate new revenue streams. Franchises also offer national brand awareness.
It can often be less costly to launch your franchise brand than investing in opening additional units and developing them to maturity.
To begin the franchise process, business owners must take into consideration a few key points. Before deciding whether a business can be franchised, you need to answer several vital questions.
Ask these fundamental questions.
It is essential to ask the question before franchising your business: “What makes your brand unique?” The brand must have distinctive attributes that help it stand out in the market. Although price and product are the most obvious differences, other factors will make a company stand out.
Excellent customer service is one of the best. It is a winning strategy for companies that are focused on customer service.
Unique stories can set a company apart. Consumers are more inclined to give money to companies whose vision, mission, and story align with their values.
Next, you need to decide if your brand is easily replicated in different geographical areas. It’s both a subjective and objective question. Brands need to decide if other markets will need the same product or are only relevant to their region.
Build a Solid Foundation
Before franchising, companies must ensure that they have the necessary infrastructure to distribute their products in different markets and have the leadership team manage them. A corporate team will be there to assist franchisees in developing a brand.
Franchising is a business that requires founders to have well-established processes and systems in place. Companies find it essential to establish a business model and build credibility. This can differ from one brand or another: one brand may only have one unit, while others might have several.
Your business experience allows you to refine your model and ensure the brand’s look before franchising. No detail should be overlooked–everything from product to design to tone has to hit the mark.
Protect the Brand
It’s essential to have a trademark that is protected. It is essential to protect a company’s unique products, designs, names, and services. A lawyer for a franchise can assist with the paperwork, build a Franchise Disclosure Paper, and counsel on state-specific franchise laws.
Last but not least, the founder should ensure the business is growing before they take the next step in franchising. While franchising is a time-consuming and laborious endeavor, it can be rewarding for many.