Your business is growing, and expansion is no longer a distant dream but a distinct reality. It’s time to branch out and get your business all over the country. And it’s easier than you think.
By Craig Falck of Africa Report
Photograph: © Pavel Losevsky | Dreamstime.com
Your business is up and running and your customers are coming from near and far to buy your product or use your service. If you think your business is unique enough to expand a new branch into every town in order to maximise your trade, it might be time to franchise your enterprise.
According to whichfranchise.co.za, these are the steps you need to follow when turning your business into a franchise:
1. Have your pilot/main branch running successfully for a set period. If you can keep this one going, it will become the model to base the others. And no matter how many franchise branches you sell, keep this one and make sure that it remains your central base of operations.
2. When you decide to franchise your business, the first thing you need to draw up is an operations and procedures manual. This is basically the ‘enterprise bible’, dictating each and every single aspect of the business, from uniforms and paint colours to the type of display cabinets and brands of equipment used. Your franchisees must be able to refer to this manual if any problem arises that they can’t fix on their own. Jotting down a couple of ideas isn’t enough – there are professional procedures and operating manual writing enterprises who compile these documents on a daily basis who will be best equipped to assist you.
3. The franchise agreement is next. This is the contract that rents the rights to your business to the franchisee and, like any other contract, has clauses that stipulate certain contractual obligations like franchising fees, the duration of the agreement, options for renewal, and termination clauses. It is a standard rental agreement, but one that is tailored just to your business. The disclosure document goes hand in hand with the franchise agreement and contains detailed information regarding the business unit as a whole. The franchisee must be in possession of this agreement in order to make an informed decision when buying the franchise.
4. Your franchisee profile will determine your ideal franchisee by enabling you to choose from candidates that are most suited to be your franchisee. This is your business, name and brand that you are franchising, so you have an active role to play in determining the kind of person you will be franchising to. A franchisee profile will enable you to pinpoint the skills, experience and characteristics needed to successfully work under your brand. The document will contain detailed information about the training provided and costs, including franchise fees and the initial fee, management fee and others. It’s always best to seek assistance from the authority body, so make sure that you consult the relevant Franchise Association of your country should you have any questions or queries about your franchised business. A quick Internet search usually puts you in touch with the relevant franchise association.
Franchising is a business direction that follows on the back of pre-existing growth. If, however, your business has sufficiently grown and you have what it takes to start franchising, all you need to do is follow these guidelines, comply with the regulations, and trust in the value of your business idea that your franchisees will come calling.
Source: http://www.whichfranchise.co.za/article.cfm?articleID=34
