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Learn How to Franchise a Business

Want to learn how to franchise and take your business to a national stage? Here is everything you need to know. 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".

How to Franchise a No BS Approach

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

What is a Franchise?

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 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.

How is Franchising Different from Other Business Models?

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.

What Are The Characteristics of a Franchise?

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:

1. Fees

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.

2. Equipment, Products and Services

You may require that franchisees use, sell and offer only the equipment, products and services you specify.

3. Vendor and Supplier Relationships

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.

4. Advertising and Marketing

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.

5. Territory

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.

6. Business Setup

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.

7. Franchise Training Program

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.

8. Ongoing Support

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.

Creating a Franchise with Your Business

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").

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How to Franchise Your Business
in 8 Easy Steps When You Are Ready

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.

1. Create an Entity

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.

2. Register Your Trademark

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).

3. Develop Your Franchise Structure

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.

4. Franchise Attorney Review and File

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).

5. Fund Your Franchise Company

We will provide you with instructions on funding your franchise company.

6. Financial Statements Prepared

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.

7. Manuals and Support Materials

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.

8. Franchise Applicant Approval Process

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. As we work together and you begin to learn more about franchising, 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.

How to Make a Franchise Successful

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!

learn about the franchise maker’s clients

"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 ]

Retail Stores Can Be Franchised

How to Become a Franchise

The steps for how to become a franchise are fairly uniform regardless of the type of business you operate. Franchising is regulated by the Federal Trade Commission, which means it is federal. Once you are approved in your home state, you will be good to offer franchises throughout the entire United States (with a few exceptions). However, in order to franchise, the first step is that the relationship between you and the franchisee needs to be spelled out and presented in a specific manner.

And this is where The Franchise Maker comes into the picture. You are not expected to navigate these waters on your own or even know how the relationship with your franchisees will be governed. Yep, we will: hold your hand and walk through it all, teach you what franchising really means, how to morph into your new role as a franchisor and we wil share with you industry best practices (just to name a few). So, let’s look at what you are required to do and how all this information is supposed to be presented so you can start offering franchises.

The Package You are Required to Provide

The Federal Trade Commission regulates franchising so there is transparency between you and your franchisees. This is done to protect your future franchisees from being defrauded, lied to or misled by you). You are required to give all franchise prospects this package which is a document that regulates the relationship between you and your franchisees. This package is known as the Franchise Disclosure Document. To learn more about what is actually in this package see this article about the elements of a franchise disclosure document. The Franchise Maker will hold your hand and work closely with you to put together all the various pieces necessary for this package; and most important put in the format necessary for one of our franchise attorneys to review and file it.

What to Do Once You Have the Franchise Disclosure Document

Becoming a franchise does not stop once you get the Franchise Disclosure Document (the magic package). Nope, now the real fun begins.

While this Franchise Disclosure Document is important, in our humble opinion once you have it, you need to know what to do with it. When do you give it out, how do you give it out, how long does a prospective franchisee need to have it, how do I go about answering questions about it, how does it become a done deal, what if there are multiple people involved that wants to buy one franchise and so these are just a few of the situations you will need to know to handle. The Franchise Maker will prepare you for all these situations and some situations that may not even be on your radar because we believe the better prepared you are to handle various situations the more confidence a prospective franchisee will have in you.

Plan on How to Execute Your Franchise Program

Let's talk about how to qualify prospective franchisees (and here is piece on "Finding the Perfect Franchisee" you find interesting). While we will build you an attractive, realistic and affordable franchise program, it won't mean anything if you do not take the time to qualify people who come your way.

Many things will need to be addressed when talking with prospective franchisees. Starting with:

  • What questions do I ask?
  • What things can I talk about, what are the things I cannot talk about?
  • Do I have them fill out an application? What about credit checks?
  • How do I make sure they have enough money?

Once you sign on a franchisee, then you enter into the execution phase. The most important part of franchising is your execution. Execution refers to not only what you are doing to help your franchisee with regards to securing space and build out (if applicable), but also what you are doing to help them prepare for your franchise training program. The franchise training program is yet another part of execution. Rest assured that as part of our franchise development program we will be working with you to define what is your franchise training program and through our proprietary processes, provide you with a road map that will enable you to identify what you will be doing each training day.

Realistic Growth Strategy

Execution is one thing, but you need to know what is a realistic growth strategy. Every business is different and depending on your concept will determine how slow or fast you should expand. Everyone would like to think that the minute they put out the word that they are franchising they will be overwhelmed with interest. And while that may be the case, just because you have overwhelming interest does not necessarily give you the green light to get as many franchises out there as you can (take minute to read about The Biggest Risk to Franchising a Business). History has shown that brands that grow fast do not last. We will discover what is a realistic growth strategy for you and what is your bandwidth while working together. Your growth strategy will continue to evolve as you become more seasoned with franchising.

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Is Creating a Franchise Right for You?

When you talk with us, we will discuss your business to identify what makes it unique and its strengths and weaknesses, all of which will help determine if franchising is right for you. If franchising makes sense, then The Franchise Maker will create a franchise program and guide you through the entire franchising process.

You might be interested to know that more often than not our President comes the conclusion that for some business owners, franchising does not make any sense. Yes you read that right, unlike any one you might find on the Internet, our President turns business owners away. We won't just take anyone to franchise. In fact, our President says all the time that the biggest injustice is when someone desperate out there takes a business owner to franchise when it is not ready or it does not make sense (read this article in our Learning Center about making a franchise without any scams). When you call us, you will get straight-forward answers!

The Franchise Maker will hold your hand throughout the entire process. We have the experience and knowledge to help you make decisions about your franchise program.

If franchising is right for your business, we provide you with our proprietary franchise development process. We will manage your entire franchise development process (no reverse delegation, that's right we actually do the work) resulting in a comprehensive franchise program that is unique to your business. And most importantly, one that you understand so when you are asked questions later from a prospective franchisee you do not have the deer the headlights look.

With us, the franchising process is simple, fast, efficient and affordable. Your involvement is necessary and we will work at your pace but the amount of time we need from you is not intrusive (see this article on how long it takes to franchise). A few of the things that might make your business ripe for franchising include:

  • Does your business provide a unique service and/or product?
  • Length of time your business has been in operation?
  • Is there a demand for what you offer?
  • Do you have a well-rounded business rather than just a product you want to get out there?
  • Have you created a magic formula of how to perform tasks?

If you can answer "yes" to these questions, your business might be ready for franchising and we encourage you to Contact Us.


What is The Cost to Start Franchising a Business?

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.

franchise articles

Franchising is a way to grow your business through a network of independent business owners that you essentially give permission to use your name, methods and processes to operate your business in their area. So rather than you opening more locations or servicing other areas yourself, you are allowing someone else to do it using their own resources and talent. To get more of a basic understanding and a deeper explanation of what is franchising visit our home page.

Franchising can offer a quicker way for you to grow and get into other markets, increase your brand recognition and provide you with additional revenue streams without the capital expenditure typically associated with opening multiple company-owned locations.

The business needs to be up and running, there is a demand for the products or services being offer, an ability for the business to be scalable, teachable and there is a commitment to providing franchisees with support with a passion for them to be successful are a few characteristics that make your business franchisable. To see more read this article “How do I Know if My Business is Franchisable”.

The timeframe is up to you, but typically it could take just a few months or up to a year to get everything in place. This includes all the necessary legal documentation and getting registered in your state so you can offer franchises all over the United States.

The document you need so you can start offering franchises is the Franchise Disclosure Document (FDD), which is a road map to the relationship. The FDD provides potential franchisees with a comprehensive overview of who you are, your deliverables, franchisee’s responsibilities and the terms of the agreement.

You can expect the absolute cost to franchise your business to be $2M dollars (just kidding) it is actually a lot less than $50K with The Franchise Maker. Yep this represents the entire cost, no bait and switch and no surprises. By the time we are done you will be in position to offer franchises all over the United States (with the exception of a few registration states).

The franchise fee and royalties are mostly based on the deliverables you provide to franchisees. We will also take into consideration industry standards, market research, competitor analysis and understanding the costs of ongoing support and training will help determine these figures.

When building a franchise program, we will identify what your franchise training program will look like and provide you with a blueprint so that you can put it together. You will also be provided with a franchise operations manual package that you are able to customize so you can provide franchisees with all the difference checklists, forms, agreements, etc. in one place for them to reference later.

Working with the wrong company to put a franchise program together that could lead to hidden agendas or leaving your franchise program exposed to claims. The number one biggest mistake when franchising is growing your franchise program too fast. Other common mistakes include: aligning yourself with the wrong company to help you sell franchises (franchise brokers), entering into a partnership too prematurely and failing to adequately interview potential franchisees are just few.

Once you are approved to offer franchises you can award as many franchises as you want, however we strongly encourage you temper your growth. As a franchisor you are responsible for helping someone to get your business started in their market and training them on the intricacies of every aspect of operating your business. Need to be careful not to over commit yourself!