Starting a franchise is one of the best ways to increase profits. It’s a great way to spread your company quickly, but how do you know if you’re ready to start a franchise?
To successfully franchise your business, you need to understand and implement these five things:
1. Operations manual
Successful franchises have systems in place across all practices within the business. These systems will be one of the main reasons that franchisees will buy into a franchise rather than starting their own business, so ensure that these systems are in place and recorded. Systems should be put in place for production, suppliers, employment, health and safety, marketing and merchandising.
These systems should then be recorded in an operations manual to give to new franchisees so they can replicate the franchise.
2. Your brand
All franchises should have a set brand and story that will appeal to their audience. This should include company logos and product names. Create a brand and a brand story that incorporates your values and ensure that your brand provides customers with a unique experience.
This brand will be the reason franchisees are drawn to your franchise and the reason why customers come back, so this stage will need to be thoroughly planned out and implemented.
3. Flagship store
Flagship stores are used as a model for all future franchises. Success of this store will increase the likelihood of success in your franchise and it can be used to showcase the success of a company and model practices for the success of future franchises.
Use your flagship store, or company store, to demonstrate how your brand and operations work and to display the profitability of your company to potential franchisees. Once you have created your first few franchises, this flagship store can be used to train employees and to be mimicked for success.
4. Growth plan
You should prepare for the growth of your franchise with a detailed growth plan. Detail how you’ll increase your training with more franchise stores, how you’ll manage finances, and how production and suppliers will react to the change in size.
Investments into these changes don’t need to be made right away, but they need to be planned for, should your franchise increase from one to twenty.
One of the most important things to consider in running a franchise is staff training. To ensure your values and employees are consistent across all franchises, training must be consistent across all locations.
The best way to accomplish this may be through online training. This ensures that training is consistent across all stores, regardless of the distance between them.
Accomplish your franchise goals with PowerHouse Hub’s franchise solution. An online solution, PowerHouse Hub allows franchisees to access information from any location at any time.
Use the group hierarchy to reflect your franchise and implement documents, branding and training where needed. Streamline plans, resources and action strategies for franchisees to utilise and implement. With PowerHouse Hub, you can build courses and assessments catered to your company systems and values. Regardless of how your company grows, franchisors and Master Franchisees can track user results by pulling reports.
- Gillam, E. (2016). Six things to set up before franchising - The Pulse Australia. The Pulse Australia. Retrieved fromhttps://www.myob.com/au/blog/6-things-to-set-up-before-franchising/
- Shouldis, G. (2017). Things You Need To Do Before Franchising Your Business - 3Bug Media. 3Bug Media. Retrieved from http://3bugmedia.com/franchise-your-business/