Tips To Franchising Your Business

If you have a small or large business that can be easily replicated, then franchising may be one of the best ways to expand it at a fast pace. And if you undertake the process in the right way, you can certainly pump up your profitability.

Here are a few tips to help you through the transition:

Systematise. Think through the process of how your business works. Good businesses are systematised. Franchisees will need loads of details and assistance to get their businesses set up and operating. This initial process of systematising may take some time, but it’s so worthwhile to have it all worked out and clear in your own mind — even if you ultimately don’t go ahead and franchise, this will still aid your current business run more efficiently. From training staff, and business cards to marketing and signage it all has to be implemented in a similar systemised manner. To ensure best practice you will need to develop an operations manual, and I suggest loads of videos, to give your franchisees an effective user-friendly reference to policies and guidelines.

Protect your brand. Your brand and how people relate to it is your most valuable asset… protect it at all costs. Your brand represents your customer ethos, your culture, and your beliefs. When you go franchising you allow someone else to represent your brand. This is a huge risk as it could create reputational risk for you. Clear guidelines must be established in terms of standards as well as how the brand will be marketed, this includes being consistent and clear in the brand message. Watch the detail as they say the old age saying goes the devil is in the detail.  Don’t allow anyone to use the brand without your prior approval. Be sure to oversee e-videos and photographs and of course all social media regularly.

Decide what markets you want your brand to be represented in. Our advice is always to adopt slow, strategic growth in your home country before you decide that it makes sense to expand on an international level.

Get experts on board. Hire a franchise consultant and a franchise attorney. Getting expert advice and understanding the laws that apply to each country in terms of franchising is crucial during the franchising process.

Select the right locations. Keep your first few locations close to home, otherwise all your income from the royalty/ management service fee will be utilised to travel to visit your franchisees. Consider implementing a Geographical Information System pertinent to your country as this will assist in selecting locations with similar demographics. This is more likely to ensure success.

Select the right franchisees. You should be extremely selective when it comes to choosing franchisees. We always say it’s like choosing your spouse so… be selective.  It’s easy to find people with money, but are they the right people? In South Africa, we have devised a number of psychometric tests which we utilise successfully to select like-minded candidates as franchisees and it forms part of the recruitment process. Always remember what it is you need in a franchisee… what is it you can’t train … perhaps business acumen. Whatever your team does not have the skill to train must be an element you look for in your future franchisees. This is especially true for a young franchisor. This is someone who will be representing you, so they need to be a good fit for the brand and fellow franchisees