While franchising a business is not suitable for everyone, it can be a fantastic way to increase the productivity and performance of your company, improve brand recognition across a wider area and attract capital without having to sell out.
If you are planning on franchising in the near future, there are a few things you should keep in mind going forward.
First, it is important to remember that the franchisor-franchisee relationship is not a one-way street.
The benefits of franchising for your business can be huge, but don’t forget to remind potential franchisees of the value they will gain from being a member of your professional family!
However, you also need to ensure that you are open and honest with franchisees from the get-go. Don’t lure them in with empty promises – they’ll only end up disappointed when they realise that you can’t walk the talk.
Instead, at the very start of your relationship, tell them exactly what you expect from them and what they can expect from you. One of the things you need to be especially clear about is the level of control you are going to exercise over them.
In order to ensure the sterling reputation of your company remains intact, you will need to maintain an adequate level of control over your franchisees.
There are a number of ways you can do this, such as putting in place a training program that will make sure all franchisees will meet and perform to your exacting standards.
According to Entrepreneur.com, you should also help your franchisees out with areas such as marketing, at least initially.
This will not only enable them to attract customers to their brand-new unit and enjoy the early stages of owning a franchise, but will also assure the franchisee that you are here to help them – and, consequently, your business – to become a huge success.
However, says Entrepeneur.com, you should never treat franchisees as if they are your employees. Never expect them to simply do what they are told – franchisees are business owners, like you, and need to be treated as partners rather than underlings.
A good franchisor-franchisee relationship is based on persuasion rather than orders.
It is also wrong to think of franchisees as a means to an end, such as getting more capital or recognition for your business.
You need to build strong, solid relationships with your franchisees in order for this whole scheme to work.
Be ready and willing to answer a whole lot of questions, both in the early stages and throughout your professional relationship.
Inc. also warns against just letting any Tom, Dick or Harry be a franchisee. It is common for business owners to be so flattered that someone out there wants to run an off-shoot of their company that they just say yes, without thinking it through.
However, you need to be careful about who you pick to be franchisees, as they will become the face of your company wherever they decide to set up camp.
All in all, the best way to attract franchisees is to think of every variable. Make sure to have your facts straight and your documents in order before you start the negotiation process.
If you exude confidence and make people feel like they are making a good decision by investing in your brand, they will jump on board.