I want to franchise my business, now what?

First of all, congratulations! Franchising is the most powerful method of business expansion. Although it is not without its occasional drawbacks, many business owners see franchising as an exciting and natural next step toward growing their business.

Being properly prepared and advised when making the leap to the franchise is essential. Making simple mistakes can turn into real problems down the road. Here are some things to seriously consider once you decide to franchise:

Hire an Experienced Franchise Consultant

Good franchise consultants have seen it all and can save you the heartache of reinventing the wheel. Franchising is a very exclusive and specialized method of doing business. Remember, you are growing your business by partnering with other independent business owners. This requires a completely different set of business strategies and disciplines than, for example, growing regional office branches with branch managers.

The right franchise consultant can be a huge strategic and cost-saving advantage for your project. Qualified franchise consultants can provide you services such as:

• Creation of operations manuals and other franchises
• Help work with your attorney and plan your franchise system
• Answer the hundreds of questions that will arise as you go along
• Teach you how to “be a franchisor”
• … and much more.

Unfortunately, the franchise world has confused what a franchise consultant really is. Some “franchise consultants” are simply commissioned salespeople representing franchisors who have agreed to be part of their franchise menu that they offer to people looking to buy a franchise. So keep in mind that not all franchise consultants are created equal.

Here are a couple of essential questions to ask franchise consultant candidates:

• Have you ever served as an executive in a franchising company?
• Have you ever been a successful franchisee?
• How long have you been in the franchise industry?
• Are you a certified franchise executive?
• If I hire you, will I work with you or someone else in your company?

Legal expertise I have rarely met an attorney who doesn’t say, “Do you need a Franchise Disclosure Document? Sure! I can do that!” I have been told by real estate, immigration, criminal defense, tax, and even aviation attorneys that they can produce franchise disclosure documents!

A franchise disclosure document is a highly sophisticated document often exceeding 100 pages with ever-changing industry nuances, all regulated by the FTC. It is a regulated and critical part of your franchising ability in the US, and many states have their own unique requirements. Don’t be fooled or lured by offers to make your FDD cheap. And for those of you who think you can download one and create your own, forget it.

What you need to complete this mission is a bona fide franchise attorney. For even greater efficiency, ask your franchise advisor which franchise attorney they like to use or recommend.

Quantum shift Making the change from daily operator to franchisor is a major change. One day you’re answering phone calls from employees claiming to be sick, checking the supplier’s order and making deposits, and then the next day, you’re discussing franchise agreements, taking minutes at franchise advisory meetings, and planning national conferences. For some, change can be quite difficult, and in fact, some simply cannot get out of business long enough to support the new franchise initiative.

Learning how to reorganize and focus your efforts toward franchising takes work and planning. Your new mission becomes the support and success of your franchisees. Are you ready for a quantum shift?

Spread the word

Now is the time to spread the word and let the world know that you are franchising. Once the franchise community realizes you are franchising, trust me, your phone will light up with daily phone calls featuring everything from franchise brokers to trade show companies, print publications, internet portals, and aerial writers. They all claim to have the most revolutionary and surprising answers to quench your thirst to sell franchises. Again, your franchise consultant can help you filter out the noise and focus on the options that not only fit your budget, but also give you the most promise of return on investment.

Now go ahead and prosper!

For many people, franchising their business is the natural and intelligent evolution of their successful and exciting business. Make sure you plan carefully and surround yourself with people who know what they are doing.

Franchising is an exciting business. Now go and help others to prosper!