As business owners, we are constantly thinking about expansion but never want to spread our resources too thin. Is now the time to expand? The decision to franchise stems from a businesses need to stay competitive and service a growing market. Businesses can franchise when they have been up and running for six months or ten years. Whether they have 1 unit or 20 units. Companies typically decide to franchise when they are in a position where they do not have the money to fuel aggressive expansion, the people/personal time to oversee additional units, or the time to grow at a slow pace either due to competition or market opportunity.
Franchisability is determined by a business systems. Their product or service needs to be systemized to the point that it is consistent and teachable. Is the business currently documenting their operations? Does the business keep accurate records? Entrepreneurs can be very quick to downplay how systemized their business actually is. Their marketing, accounting systems, sales processes, products, suppliers, staff, training, even their legal structure and dress code are all part of the system that is Their Business.
As part of Francorps process, we document all of these systems into a comprehensive operations manual that serves as a training, procedure, marketing, start-up, and franchise manual. Everything about a business must be described in detail to ensure that franchisees have the tools and franchisors have the security for sustainable franchise growth.
Is now the time to franchise the business?
The issue of timing is one of the many topics of Francorps online Franchise A Business seminar. To learn more about franchising, or how to franchise a business, visit http://www.francorp.com or call 800-372-6244.
