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by iFranchise Group
CEO, Mark Siebert

The Ultimate How-To Guide on Franchising Your Business

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Learn how to franchise your business (708) 957-2300

Learn How to Franchise a Business from Expert Franchise Consultants

How to Franchise a Business

The Processes and Services for Franchising a Business for Emerging Franchisors

How to Franchise - Infographic

How to Franchise – A 7 Step Guide to Franchise a Business

The iFranchise Group provides all of the franchise consulting services listed below, and can customize a program to meet your specific needs and budget. Call us today at (708) 957-2300, or fill out the form on this page to get a free consultation and franchise information.

Step 1: Determine Franchisability

The first step in determining whether or how to franchise a business involves two key questions:
1. Is this business franchisable?
2. Is franchising the right strategy?

These questions can only be answered after evaluating your business and determining how franchising fits with your specific goals and objectives.

Have an expert franchise consultant see if your business meets the criteria to franchise. If not, evaluate other expansion options.

Step 2: Develop a Strategy

If the decision to franchise a business is made, a franchisor should develop a business plan outlining the company’s growth and strategy for the next five years. This should detail franchising fees, investment levels, expansion goals and targets. A franchisor needs certain new capabilities and will need to ensure that these capabilities are seamlessly integrated into existing organizational functionality.

Learn more about Strategic Business Planning.

Step 3: Document Your Operations

To ensure successful franchisees and maintain quality control, the franchisor will need to develop a state-of-the-art operations manual for its franchisees. This manual will serve as a sales tool demonstrating franchisor competence to new prospects, as a training guide for new franchisees, as a reference guide for established franchisees, as a “liability limiter” for the franchisor, and as a legally binding quality control device for the entire chain.

The franchisor should also develop training programs for use in conjunction with the operations manual. Computer-based tools and programs are highly effective, as are training videos, and can be used for the franchisee, for the franchisee’s employees, and for corporate employees. This is essential for quality control in franchisees’ initial and ongoing operations.

Learn more about Franchise Operations Manuals and Training Programs.

Step 4: Have Legal Documents Created

To be legally entitled to sell franchises, the franchisor will need guidance on developing a franchise agreement and a FDD (Franchise Disclosure Document), and will need to file with appropriate state authorities on a national basis (23 states have such requirements). The franchisor will also need to maintain ongoing compliance (keeping registrations in force while actively selling) and will need to be able to document compliance with state and federal law on an ongoing basis. These legal requirements are met relatively easily through the use of an attorney with substantial franchise experience. (Companies seriously considering franchising are well advised to seek the counsel of a knowledgeable franchise professional prior to initiating any franchise efforts. Read more on the importance of having outside independent franchise legal counsel).

Learn more about important considerations when creating Franchise Legal Documents.

Step 5: Produce Franchise Marketing Materials

Once the prospect has been identified, the franchisor will also require marketing tools to assist it in the sale of franchises. For aggressive sales campaigns, iFranchise Group recommends the development of a franchise website, mini-brochure (for use in direct mail campaigns and perhaps as a give-away at trade shows), a full-size franchise sales (e)brochure, and a franchise sales video.

Learn more about Franchise Marketing Tools.

Step 6: Develop a Solid Franchise Marketing Plan

The new franchisor company will also need to sell franchises. This will require a specific strategic marketing plan designed to get the franchisor’s message to the targeted franchise prospect.

Learn more about Franchise Marketing Plans.

Step 7: Prepare to Sell Franchises

The franchisor will need to understand the nuances of the sales process and the legal constraints of franchise sales.

Learn more about Franchise Sales Training.

The tools necessary for franchising a business can often be developed in approximately three months from the completion of the strategic plan, although state registrations may delay a company’s ability to sell in certain states for another three to four months. Altogether, a new franchisor can anticipate that the franchise program should take between six months and a year to fully implement. The cost of a well-designed program varies substantially, depending on the strategy chosen and the desired speed of expansion.

View a full list of franchise consulting services we offer, or contact us to learn more.

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