You’ve crafted the perfect business concept and determined that it’s right for franchising. Now that you’re up for the challenge, what exactly is involved in getting your new project on the launch pad and off the ground? According to Bill Paige, the vice president of marketing for Francorp, there are five key steps in creating a successful franchise program.
1. Determine the Structure
You will want to start out by determining what type of franchise you are going to sell. Will it be an individual franchise, a multi-unit franchise, or a subfranchise? Once you’ve made that determination, take a look at the type of people you will sell to, the areas you want to target, and how much each unit will cost.
2. Create the Legal Documents
Two documents are required for you to sell franchises—the franchise agreement and the franchise disclosure documents. In addition, there are 23 states that require registration or filing if you are going to do business in their jurisdiction. States that require registration include California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. States that require filing include Connecticut, Florida, Kentucky, Massachusetts, Nebraska, North Carolina, South Carolina, Texas and Utah.
3. Develop the Operating Manuals
To fully enforce your operation standards, you first need to explicitly define them. This is accomplished by creating a detailed, organized and easy-to-follow operations manual.
4. Devise a Marketing Plan
Marketing is the single-most important thing you can do for your new business. By creating a marketing plan, you’re laying out franchisee lead generation. This stage of the franchise development puts in place the initiatives that will help guide you to qualified candidates.
5. Implement a Sales Strategy
After everything is in line, it’s time to sell. Having your sales process in order is critical. You are selling something that might be the biggest purchase that the prospect has and will ever make.Click here to learn more about Francorp.