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Getting Started
Before you go any further, let’s stop and make sure you’ve done the following:
· Considered your goals and motivations
· Articulated your business model
· Established an attractive, enticing sales prospectus
· Prepared a nondisclosure agreement
· Completed a series of market research projects and decided on the best locations for
your franchises
· Decided on key aspects of the franchise agreement, such as fees and territories
· Worked with your attorney to create a complete, careful, and thorough franchise agreement
· Had your lawyer review all other documentation
Assuming you’ve done all these things, congratulations! You’re ready to start looking for franchisees and spreading your entrepreneurial wings over the world at large!
Where to Look?
There are a number of places to find potential franchisees. Some of these include:
1. Online
There are many websites dedicated to connecting franchisors and franchisees. Of course, when you work with someone online you don’t know who you’re dealing with, but it’s a safe bet you’ll meet before finalizing the agreement. We live in a paperless age: don’t be afraid to give the technology a try.
2. Word of Mouth
Tell everyone you know that you’re expanding your business, and encourage them to spread the word, too. The nice thing about word of mouth is that your franchisee often comes complete with personal references!
3. Franchising Fairs and Expos
There are exhibitions specifically designed for franchisors and franchisees. At these events, you set up a booth and offer your sales prospectus to potential franchisees. These are a great way to reach a large number of serious investors, but participation can be costly: make sure you know the fees before you sign up.
4. Local Advertising
Local newspapers and classifieds are a great way to reach investors. The benefit of this method is that it allows you to limit your applicant pool to the area you want to reach. Internet and expos sometimes draw responses from further than you possibly imagined!
Making Your Franchise Shine
You aren’t McDonald’s, and you shouldn’t expect franchisees to beat down your door for the privilege of starting your franchise. Hopefully, you will eventually establish yourself as a serious franchisor, and people will recognize your name. For now, however, you’re starting out. You’re unknown, and people aren’t familiar with your business. You need to find ways to stand out from the crowd!
Here are some ways to attract potential franchisees:
· Offer a franchise fee discount for the first few franchisees. As stated, franchise fees are usually non-negotiable, but this isn’t a negotiation: it’s a special, once in a lifetime discount for those willing to get in on the ground floor of your business opportunity!
· Make sure your franchise agreement is clearly worded and provides fair, clear benefits for the franchisee.
· Keep your sales prospectus clear, concise, and to the point. Emphasize your business’s successes, and demonstrate how the franchisee can expect to profit from the experience.
· Provide adequate training and support, especially in the first few months.
· Have reasonable demands. You created your business, and it’s natural to feel somewhat protective of it. But the whole point of a franchise is to let go and have someone else take a swing. Control what you feel you must, but understand that your franchisee will want some independence as well.
If you market yourself aggressively, you’ll have a far greater chance of reaching the right person. Present sales trends and market research, always emphasising how your franchise will benefit the franchisee. Remember, people are looking to make a profit.
Play on that strength, and your business will increase in appeal!
This web site will guide you through the steps in franchising your business: what you need to know, how you should go about it, and how to make a success of it. In other words, here is everything you need to know in order to successfully franchise your business and keep it going.
Franchising is not for everybody. Be prepared to put in a great deal of work and effort. However, the golden moment in franchising comes when you’ve completed the preparations and you can stand back, take a deep breath, and watch your business expand under the direction of others. Franchising is a wonderful opportunity. All you need to make it work is a little know-how. And that’s where this
site comes in!
How
To Franchise Your Business Info Guide
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