Tag: how to franchise your business

Costs in Franchising

Understanding the costs in franchising is an important step in evaluating the right path when selecting a franchise development team.  There are many phases when it comes to franchise development and no two companies are the same.  Some offer only the necessary legal documents and others provide full-service from development to sales.  To truly compare franchise development companies, you must insist on a detailed proposal from each firm, so you know exactly what you are getting for your dollars.

You also need to take into account the type of business you own.  Full-service, sit down restaurants are the most expensive businesses to franchise.  There are a lot of moving parts and costs involved with restaurants; inventory, recipes, point-of-sales systems, kitchen equipment, cleaning procedures, back-of-house and front-of-house policies, etc.  If you are in the service industry where a potential franchisee can work from home, then the cost to franchise this business is much less.  When looking at pricing a franchise system, we take into account the all the moving parts and costs involved with your business.

Prior to even talking about the price though, we make sure your business is franchisable.  Not every business model can be franchised.  We have a vested interest in your success and we want to see your model succeed.  We take the time to learn about your business and get to know you, too.

Our goal is to build complete, responsible franchise systems that become enduring brands where all parties benefit; you, your franchisees, your vendors and most importantly your customers.

The most important aspect of growing your business nationwide is trademarking your name.  If you are currently operating a successful brand locally as opposed to nationally, other businesses may be able to establish themselves in a different area of the country using your brand name.
Registering a domain name in Go Daddy does not prevent other businesses from using your brand name. Under the Fair Trading Act of 1986, the business's reputation in the market place determines the extent to which the business will be able to enforce their rights.  To avoid costly legal battles the best protection is by registering your brand as a trademark under the Trade Marks Act of 2002.
If you do not have a Trademark attorney, we would be happy to refer you to ours.
You may have intentionally created the culture of your brand or it may have evolved as you progressed.  Whatever the case, the culture of your brand needs to be solidified.  What are your values? What do you stand for?  What do you stand against?  What is the experience that you want ever customer to walk away with?  What is your Brand's mission?

By aligning franchisees and employees to your brand's mission, core values, vision and unique positioning in the market place, your customers will receive the consistent brand experience whether they are in Knoxville, TN or Reno, Nevada.

As John likes to say, "We are in the Cult business.  We create raving fans of your brand whether they are franchisees or customers."

Clearly defining your Brand Culture is an important factor to becoming a successful franchisor.