Ways to Prepare your Small Business to Become a Franchise
If you’re currently running a profitable service business or retail operation, you’ve probably given at least a little thought to franchising. And, while it may be a viable option for your business, there are many things you’ll need to consider prior to making the jump to franchising.
The First Question You Should be Asking
A recent article in Smallbizdaily.com outlines a few of the concerns you should be addressing as you to prepare to take your franchise on the road. First, and perhaps the most important consideration is fairly basic; will your concept work in a wide range of locations? What is successful in one area may not succeed in another. You’ve got to be ready to sell, market, hire and compete in many different locations. These include: urban, suburban and rural. Other challenges include weather, demographic breakdowns of the communities, and population.
Legality and Uncle Sam
Setting up your franchise operation doesn’t come without a few legal hoops to jump through. The Smallbizdaily.com story reports that fees of up to $50,000 or more could be necessary to meet local, state, and federal obligations. A few of the things you’ll need to do include trademarking your name; setting up franchise companies; preparing your Franchise Disclosure Document (FDD); registering with the Federal Trade Commission (FTC) and re-registering if you plan to do business in one of the 15 states that requires a review of your FDD documentation by a state agency.
Rules of Thumb for a Successful Franchise Launch
Remember, the $50,000 or more only covers the application process; you’re still on the hook for building and operating costs until the new locations are up and running. One essential key to your franchise transformation is a solid foundation for your business. You should already be running a successful multi-location business before you make the jump to franchising. If you plan on selling franchises, you’ve got to streamline operations so the business model works across all locations. You’ve also got to train the franchisees so they are equipped to meet the high levels of service you’ve already established.
Let’s Get This Show on the Road
Okay, you’ve weighed all the options, you’re comfortable with the financial and operation challenges, and your attorney is ready to get the paperwork started. According to AllBusiness.com one of the biggest challenges you’ll face is getting your franchisees on board with “your” way of doing business. Anyone ready to buy a franchise has probably already enjoyed business success, so it’s important to change their mindset from, “I’ve always done it this way,” to, “I’m ready to do it your way.”
Revel POS Provides the Framework for Success
We’ve seen just how much work it is to get a franchise operation off the ground. Revel can take on a huge part of the workload with an iPad POS system designed to scale with your business, from single location to multi-location. Revel takes the guesswork out of inventory management, reporting, accounting, online and mobile ordering, staffing, loyalty programs and a host of other business challenges. You’re going to face a huge amount of work getting your franchise operation up and running. Why not let Revel lend a hand with the heavy lifting?