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How to set up franchise

Your business has grown well and now it is time to expand. The fastest way to grow your business is to Franchise. But not all businesses can or should be franchised. Let’s skim the waters and see what will it take to get your business franchised.

Knowing your business: Before franchising your successful business, you must know your business well enough to set procedures. From front desk operations and keeping books to ordering supplies, franchisors have the obligation to teach franchisees how to run their franchise. You must be able to express running the smallest detail of your business in procedural steps. As you set the standards for your franchise, franchisees will have little to no room to improvise.
Knowing how to grow your business : You may have a business, that is unique to your market, but is the proposition unique to the markets you are exploring. On one end of the spectrum, franchises can be grown as locally, as in a city or as an international brand. Knowing the market, you intend to grow in, is paramount. Growth of your business should be natural or else it will get surprisingly difficult to support your franchise.
Knowing the legalities of running a franchise : The Federal Trade Commission oversees Franchising in the US State via the FTC franchise rule. Individual states may have specific requirements in the State Disclosure Document, but they too are in compliance with FTC rule. As Franchise laws are myriad and differ from state to state as well as country to country, it is highly recommended that you hire a franchise consultant or lawyer.
Selecting a franchisee : Enthusiasm is good, but growing a business is 90% hard work, so you will have to select investors who are enthusiastic about the franchise, but are also willing to put in the hours to make it successful. As a franchisor, it is your responsibility to ensure that franchisees hold the same vision for the brand as you do, especially when they are growing the business in a market alien to you.
Supporting Franchisees : A franchisee earns their livelihood from your franchise. They are responsible for how your franchise performs in a designated area. How you respond to their needs will determine how your franchisee deals with you.

Finally, before taking the plunge, new franchisors must understand that the franchisee-franchisor relation is symbiotic. You will need to get all ships sailing in the same direction to make a successful franchise.

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