Franchising can be a fun and exciting ride, but brands need to ensure they are properly prepared before taking the leap.
You have the idea, startup your franchise concept to grow, develop and expand your brand.
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For many companies, franchising is a natural next step in the evolution of the business allowing them to expand their reach exponentially and ultimately bring in new revenue streams. The business of franchising also creates the opportunity for national brand awareness.
In many industries, launching your franchise brand can be less expensive than investing in opening a second or third unit and developing it to maturity.
A business owner must consider a number of crucial steps in order to begin the franchise process. Several important questions must first be addressed to determine whether a business is both franchise-worthy and franchise-ready.
Ask These Key Questions
A central question to ask before franchising a business is, “What makes your brand unique?” While it doesn’t have to be ground-breaking, the brand needs certain attributes that make it stand out in the marketplace. Product and price are two obvious differentiators, but there are other factors that make a company stand out.
Superior customer service is certainly one of them. Companies that focus on providing excellent customer service are winning the game.
Share your brand story – starting with your logo, name, identity, customer positioning and unique … [+]
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How To Determine Market Fit
A company’s unique story can also set it apart. Consumers increasingly want to give their money to companies whose mission, vision, and story align with their own personal values.
Next, it’s important to determine whether your brand is replicable in different geographic areas. Both an objective and subjective question, in order to assess universal appeal, brands need to determine whether other markets need what they’re offering or whether it’s relevant only in their area of the country.
Build a Solid Foundation
Before franchising, companies need to make sure they have the infrastructure in place to distribute their products to different markets as well as the leadership team to oversee it. As franchisees sign on to develop a brand, they’re going to rely on a corporate team to help get their businesses up and running.
Ready to franchise your growing business concept and turn it into a brand.
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In order to be successful at franchising, founders need to ensure they have well-established systems and processes in place from the start. It is valuable for most companies to increase a brand’s credibility and document the proven business model they’re trying to expand. This can vary from brand to brand: some may have one location where others may have multiple units.
The experience that comes from operating your business also allows the opportunity to refine your model before franchising, ensuring the look and feel of the brand is solid. No detail should be overlooked—everything from product to design to tone have to hit the mark.
Protect the Brand
In addition to fine-tuning the model, it’s important to have a protected trademark. A company’s unique products, services, design and name is not enough today. A franchise lawyer can file the necessary paperwork, help build a Franchise Disclosure Document and provide counsel about franchise laws, which vary by state.
Franchise brand launch should start with solid a foundation of success of each operating unit!
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Finally—and perhaps most importantly—a founder needs to make sure the business is growing and headed in the right direction before taking the next step to franchise their business. Franchising takes a lot of effort, time and attention, but for many, it can also be a rewarding journey.
Source: Forbes – www.forbes.com
