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Want to learn how to franchise and take your business to a national stage? Here is everything you need to know. We are an award-winning franchise development company that has been building franchise systems since 2005. You have questions, we will give you direct answers with no fluff or pressure! The most common questions are: "how to franchise a business, how difficult is it to get done, how expensive is it and will it be time consuming".
Franchising is a powerful way for you to expand your brand nationally and enables other entrepreneurs to replicate your business model in different markets. By understanding the intricacies of how to franchise, you can leverage your brand's strengths and ensure consistency at every location from coast to coast. This approach not only amplifies your presence, but also allows for quicker expansion without the time and financial resources typically associated with trying to grow nationwide by yourself.
Franchising is not for everyone, there are some advantages and there are some disadvantages to franchising. We'll go over all the steps of how to franchise and explain to you what you need to know about the magic franchise documents. For now, let's talk about the process involved in order to franchise your business.
When you call us, guaranteed you will get straight-forward no BS answers with a
clear understanding of exactly what it will take to franchise your business. The first thing we will do is chat with you to determine if franchising is even the
right solution for your business. And if you are not sure what questions to ask before you franchise, no worries
we will ask and answer them for you.
Yep, when you contact us you will actually talk to someone who will be putting your
franchise program together, not some salesperson making a commission off you! Request Information
A franchise is operated by an independent business owner that has permission by you
(under a contractual relationship) to operate the same type of business you created,
offering the same services and products in the same manner as you and under your same
name (learn more about what it means to franchise a business).
Franchising is a marketing strategy that can help you to expand your business by way of
other people operating your exact same business in other markets. Whether you want to franchise a service business, a business that requires a license,
a restaurant or even a home-based business franchising can help expand your footprint.
Franchising
provides other people with the benefits of owning their own business,
using your name and logo, system and know-how while benefiting from your
experience and being provided with training and ongoing support. This allows
you to grow and build your brand faster compared to expanding on your own.
Read on to learn all about what it takes to become a franchisor so you can
decide if franchising should be included in your growth plans.
Franchising is different from other business expansion models, such as bringing on investors or organic growth. Organic growth, for example, is when you open other locations yourself, operating and managing these businesses on your own (usually a structure of managers, district and regional managers). Another example is a distributor, which is simply a relationship where you would just supply other businesses with products (basically a vendor to them) and where you have zero control over how the other business operates. Both of these examples are NOT a franchise.
Instead, a franchise is the result of a relationship between you (franchisor) and the independent business owner (franchisee), where the franchisee is fully responsible for all costs associated with starting and operating the business under a specific set of rules that are determined by you. This relationship governs the financial, legal and operational responsibilities between you and your franchisees. If this relationship is put together correctly, it also protects your trade secrets, spells out how you are shielded from liability and incorporates various deterrents and penalties intended to prevent franchisees from leaving you and becoming your competition.
When we take you through the steps of how to franchise, we will hit on all the different characteristics that will make a strong franchise program. A franchise has a few key elements that identify it as a franchise relationship, it is important that you know them. We will teach you about them and build these elements into your franchise structure. A few of these elements include:
An initial franchise fee and ongoing royalty fees are paid by franchisees for the right to use your system, methods, techniques and intellectual property (such as trademarks, service marks and of course your trade secrets) while operating their business.
You may require that franchisees use, sell and offer only the equipment, products and services you specify.
You have already developed specific vendor and supplier relationships. The franchisee may be required to use only the vendors and suppliers (this includes service providers) that you specify. If franchisees want to use other vendors and suppliers, they must obtain your approval. This is in an effort to maintain consistency.
It is expected that you will provide any advertising, marketing materials, strategies and plans for franchisees to use in their market. If franchisees want to use other advertising and marketing materials that they create, they must obtain your approval. This is in an effort for you to control how your brand is being represented.
It is common to provide an area of operation for the franchise. A protected territory is common. This is where franchisees do not have to worry about you saturating the market with your brand, competing against you or other franchisees. However, not all franchisors provide protected territories and it will depend on your situation.
After a franchisee signs the franchise agreement and before a franchisee comes to training, it is expected you help them setup their busness. Your guidance, experience and wisdom is what the franchisee is counting on. If a build out is required, then the franchisees must make all improvements to the appearance and function of its business according to your specifications prior to opening for operation.
Teaching the franchisee the nuts and bolt of running every aspect your business. Yep, is is excpectd that you will provide a comprehensive training program to the franchisee. Don't worry, we will help develop a blueprint for your franchise training program during our franchise development process.
While franchisees are in business for themselves, they are not by themselves. Staying in contact, mentoring and providing ongoing support to help franchisees while they operate their business and tackle challenges is a key part to their success.
Business owners like you choose to create a franchise program for many reasons. The primary reason is because of resources and
talent, not to mention the difficulties that come when trying to operate several locations yourself.
When franchising you are
leveraging the resources (financial, time and talent) of others to start operating your business in other markets. When someone
else operates a business using your name and logo in another market, and doing it the same way you have been doing it by
following your magic formula, then slowly you become recognizable in various markets and your business starts to become a
brand. Something harder to do on your own. Franchising just makes it quicker (take a minute to read more about the "Benefits of Franchising").
There are several steps to franchise development. Below is a simple outline of the various steps necessary in order for you to start franchising immediately. As we begin to talk,
you will realize that we have broken each step into easy, manageable phases. Our job is to make franchising your business QUICK & EASY for you.
By the way when we say we make franchising EASY
for you we mean it! The Franchise Maker provides you with a very comprehensive and proprietary hand-holding process to teach, coach, mentor and guide you through the entire franchising process.
We will guide you on how to create an entity for the parent company. This is the company that will be in the business of offering franchises.
Register your trademark (logo and word mark) with the United States Patent and Trademark Office. That's right, we have exceptional and very talented trademark attorneys who will get all trademarks filed for you (learn how we have attorneys who specialize in trademark filings).
We will structure your franchise system and put together the magic franchise documents (your Franchise Disclosure Document (also known as FDD) package that is required by the FTC together so you can start offering franchises. Read more about why you need more than just documents when franchising.
We will give this package to one of our franchise attorneys to review, make edtis, changes and file it with the proper state regulators (learn why you do not have to worry about working with an attorney when working with us).
We will provide you with instructions on funding your franchise company.
Yep you need them and we will introduce you to one of our accountants who will prepare audited financial statements (learn more about audited financial statements). This is one of the required exhibits for the FDD package.
We will provide you with all the necessary resources and support materials you will need once you are approved to start franchising. This includes the different manuals necessary to present your operational procedures, systems and proprietary information in an organized fashion to your future franchisees. And yes this includes franchise operations manual materials. Yep we make it easy, so there is no need to panic or be scared about the franchise operations manual.
We can create and define your franchise applicant approval process, explain the Discovery Day concept and provide you with ongoing assistance as you award franchises. It is important for you to know that for someone buying a franchise it is a complex investment for them. The Federal Trade Commission has published "A Consumer Guide to Buying a Franchise" to educate franchise buyers the risks and benefits of owning a franchise that you will need to bring to their attention. As we work together we will teach you about these franchise rules and regulations. And you may even come to conclusion that despite all the hype, you really do NOT need someone to manage your franchise sales process.
That is it. Do you need a large staff for the parent company? In a word: No (see our Learning Center article on the topic of hiring people when starting to franchise). We encourage you to start out slowly and expand as your franchise business dictates. We always recommend that you begin to offer franchises in your own state and surrounding states for the first year to keep things at an arms-length distance.
It all starts with a well-crafted franchise development program, which is essential for making a franchise system successful. How your franchise program is put together will dictate the relationship between you
and your future franchisees. While franchising does come with a set of rules for the person buying into your business to follow, and while those rules are important, they do not need to be excessively harsh. In fact, to make your franchise program successful you will
learn from us some of the industry best practices which includes creating a franchise-friendly program.
The Franchise Maker has created an EASY & AFFORDABLE
way to take your business to the next level. We create your franchise program with you, prepare your franchise documents and orchestrate all the activity necessary for you to offer franchises nationwide.
Our franchise development services are designed to be flexible and as part of the program, we provide you with easily modifiable franchise operation manual materials. Our
franchise development program is individually customized and geared towards your pace. Once your franchise documents are prepared by us, one of our franchise attorneys
will review, make changes and file these documents in your state.
Our franchise development program is designed for your success. We will hold your hand, direct and quarterback your entire franchise process,
from start to finish by leveraging our experience, industry best practices and the expertise of our teams of professionals. Our focus is to build a solid
franchise program that addresses: what your franchisees responsibilities will be, what franchisees will be authorized to offer, what your obligations will
be to franchisees, what will be your fees, what will be your deliverables to justify the fees you charge, and most importantly identify the protections that are afforded to you.
We will provide you with all the facts, unbiased information and mentorship you will need to survive, grow and be successful!
"The Franchise Maker was literally the answer to all of my fears, concerns, and prayers. I knew nothing about how a franchise structure was to be built. The whole process seemed so complicated and overwhelming to me. And I still had a thriving business to tend to. I was worried about how building a franchise from the ground up would adversely affect my current business. Once I started working with Dave I began to realize just how turnkey The Franchise Maker has made building a franchise. Dave has an uncanny ability to ask questions and absorb all that you're saying, and..." [ read the rest ]
"I researched other franchise competitors for over a year and even flew half way across the country to visit one. One day I put my info in at The Franchise Maker's website and immediately got a call. After one talk on the phone I knew this would be the company for me. We clicked immediately. The great thing about The Franchise Maker is they don't take on too many clients at one time, so they can focus 100% on me and my business. I can call or email them anytime and they get the job done. Now they have opened up their contacts to me and I have everything I need including..." [ read the rest ]
"
The Franchise Maker made our franchising process considerably less expensive and far
less complex than I anticipated. I was a bit concerned about franchising my business
because I already had a couple of locations that was planning to sell in the future and
I did not want to jeopardize that plan. In my initial conversations with Dave he genuinely
understood my concerns, explained that I can sell them as a turn-key business later
with the added benefit of..."
[ read the rest ]
"
Have you ever had an experience that was as close to perfect as you could imagine? Or
maybe you couldn't even imagine what something would look or feel like that was that
close to perfect? Well, I can only say that that’s what happened to me once I engaged
with The Franchise Maker. The huge amount of work involved, the work done by Dave and
his team, was exceptionally well done. And Dave patiently explained every word, step
by step, so that I would know what the content was and be able to speak to it with
potential franchisees. The content was perfect and sailed through the regulatory
process without..."
[ read the rest ]
The cost to start franchising a business is not as much as you think. We are sensitive to your needs to minimize costs and would rather
see you spend money on advertising and marketing your franchise when we are finished.
Our
fees are minimal and all costs to franchise your business are a fixed FLAT RATE. Compensation for
our services are broken down into different phases and you can choose to pay when each phase
is completed. You can take advantage of our Pay-As-You-Go program where you do not have to
commit to a large sum up front. We will be happy to explain this program to you in greater
detail when you
contact us.
Our Pay-As-You-Go program was created to give you added confidence in our services since
the risk is shifted on us to perform for YOU.
Yep, you are really going to be surprised at how little it will actually cost you to franchise a business, keep reading.
You can expect the absolute total cost to franchise your business to be $2M dollars (just kidding) it is actually a lot less than $50K with The Franchise Maker.
Unlike other costs you may have seen on the internet or heard about, this represents a true comprehensive cost. Yep that’s right, no bait and switch here. As mentioned
above everything we do is a flat fee. And yes this cost includes the fees for all work performed to prepare your documents, franchise operations manual materials, filing fees
in addition to the attorneys and accountants that are necessary and part of the process.
Don’t let the costs of franchising hold you back from growing your business. By the time
you are ready to offer franchises, you will have spent less than the amount listed above. It’s that simple! Want to know specifics, call us.
The Franchise Maker is a proud supporter of the Susan G. Komen Foundation to find the cure for breast cancer.
