Franchise Strategy Development 101: Building a Brand You Can Franchise

Franchise strategy development can be a complex area, but achieving success can be extremely lucrative. Unfortunately, many business owners dream of franchising their business but are overwhelmed by the processes involved. However, you've worked hard to build your brand. Therefore allowing others to benefit from your diligence should provide significant rewards.

One of the best ways to maximize your chances of success is to work with a professional company. They can provide a full service, start to finish outsourced sales function for your business. You can then be sure you receive the best possible advice and services while you expand your operation. 

Read on to find out all you need to know about building a brand you can franchise.



Assess Your Current Position

While it is tempting to start looking for franchisees straight away, this can be a recipe for disaster. The first step in the franchise sales process is to understand your current position. Potential investors will look closely at every aspect of your business, and they'll expect you to have all the answers. 

For example, they'll likely ask how you win new business and what kind of retention rate you have. They'll also ask about the costs associated with each part of the business. For assistance, you can work with an expert outsourced franchise sales company. They'll conduct a thorough assessment of your opportunity. 

They can then confidently and accurately answer these queries on your behalf. A professional will also be able to identify crucial positive factors they can promote to possible franchisees. This can show why an investor should choose your brand over a competitor.

Consider Your Franchise Fees

One of the most difficult issues people run into when they consider 'how to franchise my business' is setting the correct valuation. A franchisor will generally receive an upfront fee and then an ongoing monthly payment. This is usually based on the success of the franchisee's business.

If you set your fees too low, you reduce your potential income and also make it seem like your company is not particularly successful. But, if you choose a price that is too high, it will be challenging to attract investors. This is where the help of a professional with hundreds of franchise sales under their belt is invaluable.

They will evaluate the industry, your business revenue, and future potential earnings. They'll also consider how many people are interested in your specific market. This process produces a fair price point that maximizes your income. But it also provides plenty of opportunities for investors.

Franchise Strategy Development and Your Target Customers

When you know the value of your offering, you can begin to look for franchisees. This is not as simple as advertising your franchise and selling to anyone who has the necessary money. Whoever becomes one of your investors becomes part of your brand. 

Many consumers leave online reviews on sites such as Google My Business. These could reach thousands of customers who may be interested in your services. If a franchisee does not treat customers well or employs lazy staff and does not do a good job, this can damage your entire franchise empire. To avoid reputational damage, it's essential to select your chosen partners carefully. 

An expert firm will have experience in this field and reduce the risk of allowing an unsuitable investor to become part of your business.

Consider Your Training and Support Systems

Franchising a business isn't just about making a sale and then looking for the next buyer. You may work with investors who have a lot of experience and know-how to run a business. But you may also work with others who need considerable support. Even if someone is competent, it's still important to work with them so they understand the processes specific to your business.

Every franchisee should have an identical working method, so you need to have a detailed operations manual. You'll also need to consider when and how often you will be available for training sessions or to answer questions. For example, you may want to spend one day a month for the first quarter on-site with a new franchisee. 

Or, perhaps you'll run group training sessions over a platform such as Zoom. The key is to manage your time effectively, so you don't become overrun. However, providing training is not a step you can skip. It helps maintain and expand your brand so you can continue to make further sales.

Be Legally Compliant

Working with an experienced firm can be crucial when ensuring compliance with legal regulations. A mistake could cost huge amounts of money while also damaging your brand in the process. Due diligence is essential, and it's always best to consult with professionals to avoid making unnecessary errors.

This provides peace of mind that you have followed the correct procedures when dealing with each franchisee.

Don't Neglect Your Core Business

While making a franchise business plan, it's important to factor in the time you need to continue building your brand by running your own company. If you lose focus on the core business, your revenues could fall, and your reputation could suffer. This will affect your business valuation and your ability to attract quality franchisees.

Striking the right balance between expanding through franchising while developing the core business is vital.

Partner with Strategic Franchise Development

Strategic Franchise Development is a market-leading company in franchise sales. We work closely with you to understand your business and develop the best franchise strategy development plan for your company. Our skilled and experienced team keeps you informed every step of the way while performing all the required tasks on your behalf.

With many years of success with our franchisors, we are proud of our record and are confident we can help you achieve the best results. 

For a consultation and a free quote, contact the Strategic Franchise Development team today.