Don’t Go it Alone, We’ll Guide You Through the Process of Franchising

From Business Owner to Franchisor

At Franchise Beacon, one of our specialties is helping businesses become franchisors. Though not easy, the path itself is not mysterious: first determine whether franchising is the right growth model, then build the right foundation, then assemble the right team to launch and grow the brand. Regardless of where you are in the process, we can help, and the earlier the better.

Feasibility

Are you sure franchising is the right path for your business? The honest answer, if you have not done a feasibility study, is likely “no” or “I think so but…”. If you do not feel like you have a full grasp of both the benefits and drawbacks of franchising as an expansion model, or if you are not certain that franchising is the right growth strategy for you, you need to start with a feasibility study.

A feasibility study evaluates the business model, the business owners, and the current market condition, as all three must be aligned to have a successful franchise launch.

Preparing to Franchise

Okay. You have got that out of the way, you have evaluated franchising and other options, and you have decided this is the right growth path. Excellent. Now it is time to lay the franchise groundwork.

First, make sure that you have the funds in place necessary to effectively launch and market your franchise. If not, stop, wait, and go forward later. We strongly discourage “shoestring” franchising, as it rarely leads to anything but failure. This bears repeating; if you do not have the funds needed to drive franchise growth after you spend the money to become a franchisor, you are a franchisor in name only.

Of course that is only part of the equation. A strong foundation is a must to achieve sustainable growth. The pre-franchise work you do forms the foundation of your franchise. Documentation, developing a growth-oriented org chart, and understanding the investments that will be required of you, both from a capital and time standpoint, will set you up for success. Learn more about the right foundation here.

There are also certain considerations that may come into play depending on your geography. For example, the following article discusses unique challenges if you are considering franchising a business in California.

Assemble Your Team

Be sure you have the right advisors in place before you make franchise-specific decisions such as fee structure, offering restrictions, and territorial exclusivities.

This is really your final step in launching as a franchisor; assembling your team to execute on your vision. You will decide who will handle franchise sales, possibly bring on additional executive staff, and select franchise counsel. These decisions will impact the trajectory and culture of your franchised brand. Find out how to assemble the right team here.

If you are seriously considering franchising and you do not yet know what should happen first, start with feasibility. If you have already made the decision to franchise, we can help you move from groundwork to team assembly to launch with a stronger foundation and fewer avoidable mistakes.