Let’s talk straight. Determining how to franchise may be like constructing a house when people are already walking queues into the house. You have got one that works, possibly even prospers, and now you are antsy to grow. Franchising is not all about giving out your business model and wishing you good luck. It is about developing a system that can be followed by someone to make sure that you have not lost that specialness of your brand in the first place.
To begin with, speak the truth. Is it really possible to have your business running without you there day after day? Be real. Franchising will be a disaster should everything go wrong the second you have a vacation. You must have systems, clear, consistent, teachable processes that any person can learn and follow before you can franchise. You should not be focusing more on yourself, but on the structure that maintains your business. This is the aim of duplication and not dilution.
Next, document everything. And I mean everything. Just imagine that you are writing a recipe–a recipe that someone might be able to follow, in order to have the same flavor. How do you hire? How do you train? What about a customer who is your nightmare and who feels that he/she is always right? Write it down. Such information becomes your operations guide. It is the lifeline you will be relying on by your franchisees. The more meticulous it becomes the less frantic phone calls you will get in the future.
So now we shall get to the less glam but by no means the least important aspect- the legal one. A disclosure franchise document (FDD). This document specifies all the requirements, expenses, and anticipations of you and your franchisors. It is long, it is dry and it is critical. Don’t cut corners here. Locate a franchise legal expert. It is not a place to be satisficed with good. The poor legal entity will kill you even before you begin.
Locating the proper franchisees is the best part, and the most dangerous one. It is not the person with a checkbook who is to operate your brand. You are not picking business partners, but customers. Find individuals who get your mission and are ready to adhere to your systems. An irresponsible franchisee will destroy your reputation like a house on fire. Take your time. Interview them as though you were outsourcing someone to take care of the baby–because that is what they will be doing.
The key to a good franchise is training. It is at this point that you transfer the DNA of your company. It is not enough to dump information and walk away. Educate them, mentor them and remain attached. Consistency is built on good training and trust is built on consistency. Franchisees must know why you do something and not how. Such knowledge makes rule-followers brand ambassadors.
When they are in operation it is not the end of the road. Franchising is not a trade, it is a relationship. Keep communication open. Offer ongoing support. Provide avenues of exchanging ideas and problems by franchisees. The greatest franchises are families, in which they celebrate victories and find solutions without finger-pointing.
When you franchise marketing transforms. It is no longer selling a single store that you are selling a brand that spans on a set of different locations. The message should remain the same, but individual franchises should be able to make it fit its local population. Citizens of a city may react differently as compared to those of another city. Allow them a leeway, but never have your brand identity to stumble.
Money talk–let’s not skip it. You will have to determine the fee of the franchise, royalties, and startup expenses. These are supposed to match your brand value and support that you are offering. Be fair, but be smart. The franchise is a success because it makes both parties win. Your franchisees must not feel underpaid and you need to feel not overpaid but need to keep the system on the way to a higher level.
Franchising takes patience. You will make a mistake, correct, and make a mistake. But that’s part of the process. Every new place will make something of you. The larger you get the less you will feel like cloning your business; franchising is about sharing the pulse of your business.
It is the secret of learning to franchise. It’s not paperwork. It’s not just contracts. It is creating a network of individuals who have a belief in your vision to its extent of keeping it going, one franchise at a time.