Before you look up “How to franchise my business”, you first need a great system. When people buy into a franchise, what they are really buying is a proven, turnkey, money-making system. You must be able to show that your business formula can be duplicated, and that the same results can be replicated by novices who buy your system. Upside Group can jumpstart the “how to franchise my business” process and walk you through the step by step development with advice that our experience has proven works for all of our clients. While there is no standard one way to find success, our team knows the techniques that can help improve the efficiency of business models and get them ready to be franchised.

That said, when looking at “How to franchise my business” guides, what you are initially looking for in potential franchisees are people with both money and some expertise. Especially in the beginning, it’s important that you franchise to people who are not novices — i.e., those who know something about your particular business or industry — as the chance of their success is much greater. If they succeed, then you succeed, and vice versa. Later, when you have established your franchise business and perfected your system, the expertise of your franchisees becomes less of an issue and you can start writing your own “How to franchise my business” guide.

One example of the basic parts you as the franchisor will have to communicate to potential franchisees is the franchise fee. Potential franchisees must be willing to pay your franchise fee which can run anywhere from a few thousand dollars to $500,000 for a McDonald’s franchise. This, among many other topics has to be analyzed and clearly stated before the franchising process can begin.

Franchising your business has tremendous advantages, from a higher return on investment (ROI) to risk reduction and retention of capital. But before you begin the process of franchising your business, you must first determine if your concept and operating system are franchisable.

Basic tenants of franchisability include:

Credibility. A franchisor must be credible to prospective franchisees.

Uniqueness. Your business must have sufficient differentiation from other franchises either in terms of products and services, marketing, lower investment cost, or target market.

Straightforward operations. Your system and business model should be relatively easy for a new franchisee to learn in a short time frame.

Adaptability and demand. Your concept should adapt well to many locations and there should be sufficient demand for your products/services.

ROI. A franchised business should have enough profit after paying fees and royalties to earn an adequate return on investment.

Strength of management. Even the most successful company will falter without a strong management team in place.

If your business passes this litmus test, you will need a franchise plan and a business plan. A franchise plan is not the same as a business plan. Essentially, the franchise plan is a plan for franchising your business, detailing all of the steps you will take, as well as the franchise fee. The business plan outlines your overall business strategy over the next five years.
Next you will need an operations manual and training programs for your franchisees. In order to legally sell franchises, you must draft a franchise agreement and a Franchise Disclosure Document (FDD) and file with the appropriate state and national authorities. A franchise attorney can help you create these documents and meet the legislative requirements.

One of the main reasons franchising is attractive to franchisees is that they are buying the rights to use an established trademark and/or brand name. If you have not already done so, make sure that your intellectual property rights are available and register them.

In order to sell franchises, you will need a marketing plan. Marketing efforts could include a sales campaign, such as direct mail initiatives, franchise sales brochure and collateral, a sales videotape, a Web site with franchising information, paid placement on franchise opportunity Web sites, listing with a franchise brokerage firm, and trade show participation.