Your Business: From Concept to Franchising
Every week I get at least one call from a successful business owner wanting to explore franchising their concept. Typically, during this complimentary introductory call, the caller requests a ballpark figure of the costs involved. Typically I advise that there is a myriad of issues and concerns to be addressed, and briefly outline just a few of them.
There must be a business plan based on a careful financial analysis of current operations, indicating that your business can be replicated (taught to others), and a well thought out plan for a franchise structure for your business (not the operation to be franchised), that will work as you have envisioned.
Before jumping into the franchise world, you need to understand your “Success Factors” such as demographics, customer bases, and locations. Have you defined them in terms of your customers and the potential franchisee (business partners) that can perform at the success level you have created?
You will need an Operating Manual that describes your daily business functions and policies in a manner that can be easily followed. This is an essential tool the franchisee needs to execute the business in a profitable manner, and will likely require the assistance of an expert in the field.
Expert advisors will include CPA to prepare initial, and possibly audited, financial statements, and an experienced franchise law attorney to draft the franchise agreement and related documents, including the Franchise Disclosure Document.
Think of these variables, add about 50%, and you are in the ballpark. If you are willing to take these necessary steps, it’s time to move forward with the expert help you need to develop your franchise concept.