How do you franchise your business?
Answer:
You may want to approach some Franchise Agents to do this. They will look out for potential franchisees for you, or promote your fanchise. They usually take up a commission after a successful transaction, and the rate of it would depend on the sales price sometimes, or pre-agreed.
As franchise businesses allows owner to kick-start a business immediately without much research, you should ensure that
you can provide franchisees, with a proper system of running the business. Things like operations manual, from *accounting to sales and even day-to-day recommended scope of work. You also have to work on problem management system for them, and even some ready client base for them to kick-start.
It's important to start considering how far you want to make available your franchise to interested parties. For instance, just in the States, or the region you come from, or international? Be clear with your knowledge of Geography. I have seen franchises in the States thinking that Singapore is part of China. With that kind of knowledge and perspective, you can even work out a delegation system, like, selling master franchises to regions, and let them promote your business to their own region.
Work out on a rough budget you would think those keen people would need to start this business, factoring in the good-will of your current business.
*Accounting is important, as you have get them to submit their sales, with some proper guidelines, and usually, you would get a certain agreed percentage of royalty fees based on a regular period. So, you might need to keep track of their sales and business. To handle all these, you might need to employ someone who would handle it for full-time.
Royalty fees are paid, especially, if you perform regular research on your business, so that your franchisees benefit from it. Remember, how you are going to give support to your franchises.. You still have to let them see the value of having your business as theirs. Other Questions and Answers: