Turn your business into a franchise and multiply your profits in 8 steps

Expansion through franchise It allows the business to grow quickly without having to invest large sums of money in new locations. These new branches provide the capital necessary to open new stores, which accelerates Company growth.

AND franchise is a business model in which a person (franchisor) grants to another person or entity (franchisee) the right to use your brand, systems and know-how to conduct business in accordance with certain predetermined guidelines and standards.

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That’s the recipe for starting a business with a work-life balance approach.

In fact, franchise is a way to replicate a successful and proven business in different locations through businessmen independent, franchisees.

According to the University of St. Clarea well-executed franchise program can expand a a solid business concept into a global organization.

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Pros and cons of turning a business into a franchise

The university institute also provides some points to transform from business to a franchise That is a good idea. It even provides different items who are against.

Advantages of starting a franchise

  • The franchise provides expansion capital
  • Avoid problems related to co-workers
  • Speed ​​up expansion in a wide area
  • Franchise operators are motivated to succeed

Disadvantages of creating a franchise

  • Share Profits
  • loss management absolute
  • Exams with franchisees unprofitable and/or difficult
  • laws Disclosure of state and federal franchises

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Steps to franchise business

The Mexican Franchise Association (AMF) gives service people a little manual to find out how they can get back from their business and franchise.

1. Define the concept of your company

In addition to the brand concept, the organization suggests that stakeholders delve into the brand type Business model which they currently have and which will serve as an example for other branches.

“The first thing you should do is to properly define or conceptualize the model, that way you will be clear about what you want to sell to future franchisees.”

2. Create an attractive image

The businessmen They need to make a picture manual since yours franchisees They must follow the same style of the parent branch.

The manual must include: use of signs, stationery, uniforms, advertising materials and vehicles. At this point, the most important thing is to register the trademark, as well as the logo and slogan to prevent fraud.

3. Register the company in the services of franchisors

Before starting a franchise, its manager must register the property in Register of franchisors. This will help you get all the necessary permits in order as soon as possible.

4. Create a franchise headquarters

The leader must create a your company headquarters whose mission will be to provide the necessary support and technical assistance to other franchises.

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5. Design a financial model

Leaders before selling a new one franchise, must have enough information to give franchisees peace of mind. One of the most common questions they are asked is: “How long will it take to see my money back?“.

6. Organize everything in legal matters

When creating a franchise systemdirectors must consider the type of contract each franchisee will sign, so it is important to have it well defined before starting a franchise.

The AMF recommends enshrining in the document the rights and obligations of each party, therefore this document must be carefully prepared. Among other topics to be addressed: fees payable, contract validity, renewal clauses, territory, obligations of the parties, intellectual property aspects, etc.

7. Write operations manuals

This type of manuals will serve franchisees as a guide to running your business according to the standards set by the company’s leaders. For this reason, they must be correctly and comprehensibly written and must also contain teaching material.

“It needs to be easy to read and implement, and it needs to be up-to-date with the changes made to the business model.”

8. Work near franchisees

“Technical support and assistance and ongoing training from the franchisor are essential elements of franchisees’ success.”

When a business becomes a franchisethe original trade must take care not only of legal and financial issuesthey must also provide franchisees with training.

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