By Michelle Loredo
Expanding your business can help you have a higher profit. Franchising is a way to reach a broader audience. Here is a list of tips and tools for your small business into a successful franchise.
What is a Franchise
A franchise is a type of business model where the original business owner owns all of the legal rights to the business but can use the trademark to others as part of the franchise. If a person becomes part of the franchise, they have the legal right to use your trademark, logo and business practices. Before you become a franchise, you will have to research:
Franchise Disclosure Document
Franchise Fees Investors Location
Once you have researched the ins and outs of owning a franchise and feel ready to move forward, get all of your documents together and start forming a business plan.
Create A Plan
Once you have decided to move forward with franchising your business, you need to create a franchise plan that outlines your business operation. The outline needs to include:
Goods and Services Provided
Logo/ Marketing Material
Management and Staff Positions
Target Customer Base
Create employee manuals, handbooks, safety manuals, customer service guides and other training materials to ensure that all businesses are running the same as the original franchiser. You also need to create finance-related guides, including employee payroll, invoicing and record keeping.
Once the pieces are created and given to the franchises, take your time in training your new management teams and employees. They need to be prepared to run the franchise as the original business, so training is of high importance.
Lastly, you also need to create a Franchise Agreement and Franchise Disclosure documents. The documents outline the legal responsibilities that franchise owners have to agree and follow.
Fees and Tax Responsibilities
Guidelines in Buying/Selling Franchise
Franchise Proprietary Secrets
Hire Professional Help
When you are in the process of franchising, consider the notion of hiring franchise consultants, lawyers and accountants. Franchise consultants will help you create business manuals, marketing tools and a Franchise disclosure document. An FDD is a document that outlines franchise regulations. Franchise attorneys will help you create a letter of intent, confidentiality agreements and contracts. Accountants will help you establish financial statements, tax responsibilities and purchase price adjustments.
Small Business Help
The UH Small Business Development Network is here to help. Our business advisors will help you grow your small business, increase your bottom line and develop expansion plans. All advising sessions are at no cost, confidential and one-on-one.