Are you thinking of franchising your business?
Your business is your baby and it is growing. You’ve decided that franchising your business is the best approach to expanding your brand, but you’re not sure how to get there and what you need. So how can you find the right company to help you move forward to reaching your goals? Well, you are actually looking for a franchise development company like ours.
There are many firms like ours throughout the U.S. some good and some not so good. When interviewing franchise development companies, we recommend that you ask these following question
1. Where is your office located? If the consultant is working from home, then they are not a legitimate business. A stable franchise development company has employees and a physical address.
2. How do you charge for your services? Some companies have an a la carte approach to pricing, other companies charge by the project. The most important question to ask every prospective development firm is, “What exactly are the deliverables?” A complete franchise system will have franchisee training and support programs, all the necessary legal documentation, on-the-job training for employees, marketing plans and strategies for franchise sales, and franchisee relationship management. Ask to see their work. As they say, “The proof is in the pudding.”
3. Does your company focus on franchise development or does it sell franchises? There many different types of services in the franchise industry. There are franchise brokers, franchise consultants and franchise advisors, who help people find the right type of franchise to purchase. If you come across a company that is more into the selling of franchises, then that might not be a good fit for you. You really need a franchise developer that is committed to building you a complete, comprehensive franchise system.
4. Are franchise documents prepared in-house or outsourced? One of the most important legal documents that you will need is a Franchise Disclosure Document that complies with the Federal Trade Commission. Some companies take the easy route and use a template, a one-size-fits-all approach, then charge you an arm and a leg. Every business is unique so therefore your FDD must reflect your business model.
5. How many franchise systems have you built? Ask to speak to their existing and past clients. Invest some time visiting the actual franchise businesses. Are the franchisees satisfied and do they feel that they were adequately trained to operate their franchise. You will be amazed at how much information you can receive from franchisees.
As with any business relationship, you need to trust the company that you are working with. Ask for references from their vendor list. The way someone treats their vendors is a pretty good indicator of their character.
We take a customized approach to franchising your business. The process is not easy, but we try to make it fun, affordable and prosperous.