Aspiring to make your business more successful through expansion, start thinking about franchising your business. And further to become a successful franchisor here are a few business mantras to consider while launching your franchise...
Either to opt for a company owned outlet or take up a franchising route is the first thing that strikes the mind of an entrepreneur who wants to expand his business. The entrepreneur is always suggested to expand through franchising as it offers him a lot of benefits like - no hassles of taking loans, of finding the right location, getting license to start and maintaining the outlet. All these problems would be handled by the franchisees who will take care of the financial aspects of opening up a new outlet and also give royalties for taking the brand name! Moreover running a company outlet is difficult if you plan to expand to far off places or countries as well. So franchising is much safer and rewarding. Now if the entrepreneurs have made up their mind to franchise, let us proceed on the various steps of launching the franchise.
Initial planning: The prospective franchisor firstly has to start planning regarding all the aspects of his company. It is better to start franchising in the same vicinity as the customers are already known to the outlet. If a business is popular in the northern side, launching outlets in south can be a bit complicated initially. Every business cannot work in every region. After selecting the regions where you want to establish your outlets, you should make the modifications in the outlet according to the particular region. Mc Donald’s do not cater beef dishes in India keeping in mind the religious sentiments of the Indians.
Planning about location: After selecting the region of expansion, the franchisor then needs to plan the ideal location for his outlet. He needs to inform the franchisees regarding the apt location to open his franchised outlet, whether it should be in a high street, a shopping mall or near residential areas. Prospective franchisor should also plan what kind of property should the franchisee have, the outlet can be rented, leased or can be owned as well. It is the franchisor’s prerogative to set the standards for his franchised outlets.
Determining the investment: The first thing the every franchisee wants to know is the actual investment required to open the outlet. Therefore as a franchisor you should determine in advance the fee you will be going to charge from the franchisee. It can range from thousands to crores according to the set up, training provided and the popularity of the brand. The franchisor needs to consider the return on investment (ROI) and inform the franchisees so that they can also decide.
Determining the training: Training is also an important ingredient of franchising. So the franchisor should decide in advance that what kind of training he needs to impart to his franchisee to set up a successful outlet. He should employ the best trainers for the job. For e.g. to start a food franchise, appropriate training and recipes should be provided to maintain the quality of the original delicacies. In order to run an educational institution the franchisor should inform the franchisee about the qualifications needed for a particular post.
Appointing franchise managers: When an entrepreneur thinks of franchising, he should start appointing the best franchise managers. Franchisor cannot keep a regular check on the franchised outlets and even contact and guide the franchisees personally, so managers are considered necessary for rendering help to the new franchisees. They are the middlemen between the franchisor and franchisee and are responsible for maintaining relationship as well.
As the most important part of franchising is the franchisee, therefore as a prospective franchisor you should choose the best franchisees. To expand the business rapidly do not compromise on the qualities of a franchisee. Look for like minded, hard working and reliable franchisees as the future of your brand depends on them.