Francorp used this six-step process to help brands such as Jollibee, Potato Corner, Bench, The Generics Pharmacy, Crystal Clear, Mont Albo Massage and 3,000 other clients to grow from a small business into a success story. Here are the six proven steps to convert your business into a winning franchise:
- Strategic planning
Franchising seeks to create a win-win scenario for the franchisor, the franchisees and the customers. To achieve this scenario, strategic planning is crucial. The business plan and the financial model must be created. The business plan should explain where and who to sell your franchise to; the price of the franchise and royalty fees; and how to develop your franchise operations and support infrastructure. Strategic planning intends to maximize the franchise’s revenues to benefit all of the parties involved.
- Streamlining operations
The business owner should detail the tasks and activities required to operate your business on a daily basis from opening to closing time. The operations manual must explain how to run the business, from hiring policies, financial controls and effective audit practices. The manual must set the benchmark to audit the employees’ quality of work, and it also ensures consistent quality throughout the franchise network.
- Legal documentation
The franchisor must prepare the legal documents which will protect its trademark and names. The franchise agreement must be prepared, and it not only defines the rights and responsibilities of the franchisor and the franchisee, but it also enumerates and imposes the corresponding penalties if there’s a violation thereof. If the franchise agreement is below twenty pages, it is too short, and it will not sufficiently protect the franchisor and/or the franchisee.
- Franchise marketing
The business owner may have mastered the art of marketing his product/service, but marketing a franchise is different because it tries to procure franchisees. It requires a different strategy because you will identify the ideal franchisee, and it will detail how to effectively reach them. It not only tries to focus on the strengths of your products/services, but it also focuses on people who want to start their own business and be their own boss.
- Franchise sales
Selling your franchise is different from selling products/services. “Franchise selling” is like business matching because it tries to find the right franchisees. You can’t choose your customers, but you can always choose your franchisees. You can’t just sell your franchise to anyone. The success of a franchise depends on an effective franchisee selection process.
- After-sales support
One of the key promises of franchising is that people can be in business for themselves but not by themselves. As a franchisor, you also need to be there for your franchisees even after the contracts have been signed. This usually entails consultations with your franchisees even after the opening of their outlets. To ensure the success of every franchisee, a franchisor should provide the support and guidance to increase the franchise network.