Owning a profitable business does not automatically transfer into establishing a thriving franchise network, as being a successful franchisor is very different to being a successful business owner. It is advisable, therefore, that once a business owner has made the decision to start franchising their business model, they recruit a franchise consultant who will be able to provide expert advice and guidance.
It is vital that the relationship between the franchise consultant and the franchisor is strong and harmonious, as the franchise consultant will not only help the franchise create their franchise package, but will also aid the recruiting of franchise owners. The relationship between a franchisor and franchise consultant will also often continue even when the franchise network has been established.
To ensure that the franchisor chooses a consultant who they are comfortable working with and can trust to help guide their franchise, the franchisor should speak to a number of consultants and find out about their experience, skills, and qualifications. Also, if possible, the franchisor should arrange to meet the consultant at their head office and have the consultant visit their office before making a final decision.
Once the franchisor has recruited a consultant they will then work together in creating a plan of how they are going to franchise the business. To do this they will discuss the business concept and decide a target number of franchise owners to be recruited, which locations are a priority, and how they will advertise the franchise opportunity.
At this stage the franchisor will also start looking at creating a franchise agreement. The franchise agreement is a legally binding document so it will be necessary to involve a solicitor who specialises in franchising. A good franchise consultant will already have contacts in the legal profession and will be able to put the franchisor in contact with a reputable solicitor.
Now that the franchise plan and franchise agreement have been created the franchisor will need to start advertising their franchise opportunity. Again, a good franchise consultant will have links with specialised franchise publications where a franchisor will be able to advertise their business to their target readership, which will ensure the franchisor does not waste money on unfocused advertising. The advertising campaign should create a number of quality leads from people who are serious about owning a franchise and they franchise consultant will be on hand to ensure that the franchisor recruits the right person for their business.
Even when the franchisor has started recruiting franchise owners their partnership with the franchise consultant will usually continue and as the franchise network grows the franchise consultant can help create further plans to aid continued growth and look at the possibilities of future international expansion.
Reported by Derin Ibrahim