How To Franchise A Business Phase One – Strategic Franchise Planning
Assuming a business is franchise-able (another topic), a successful how to franchise a business development program begins with developing a comprehensive strategic franchise plan – a foundation for franchising – to guide the new franchise company. Especially in the franchise industry, if you don’t plan for success, you set yourself up for failure. With 3,000 other companies offering franchises, more is needed than boilerplate legal documentation, an operations manual, invoice and handshake. A detailed, specific franchise strategic plan and framework must be developed that encompasses marketing, operations, finance and the critical support function. Intellectual property rights are also identified and protective measures taken. Using a franchise expert with an MBA and past successful franchise ownership experience is a best practice approach that will yield strong dividends.
How To Franchise A Business Phase Two – Franchise Documentation
If a company makes doing a good job at the planning stage its number one priority, franchise documentation is relatively straightforward. A franchise operations manual and franchise training program are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services. The franchise operations manual and franchise training program curriculum must be drafted or edited with a particular focus. Certain topics, chapters and policies used in manuals for company-owned locations, for example, are entirely inappropriate in a franchise environment, creating significant franchise liability issues for the franchise company.
Finally, after all of the above are underway, a Franchise Disclosure Document or FDD – similar to a securities (stock offering) prospectus, is prepared by a competent franchise attorney and registered with various regulatory agencies to comply with applicable federal and state franchise laws.
How To Franchise A Business Phase Three – Training And Implementation
The exciting implementation phase is where the sparks begin to fly as franchises are sold, the new franchise owners are taught and trained, and opening assistance is provided. It’s also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.
The reason: most new start-up franchise companies have not been trained in how to properly operate their new business, nor can they afford to hire a six-figure, salaried person with franchise management experience. A better solution: provide new franchise companies with in-depth instruction based on three decades of excellence and experience in franchise industry best practices. Coupled with on-going, as-needed advice, this instruction is affordable, practical and will save new franchise companies tens of thousands of dollars initially and even more going forward (and, of course, not having to pay a yearly six-figure salary for franchise management experience).
copyright 1982-2009, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved
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