When a company reaches a certain level of success, the business owner will often turn the business into a franchise. Some of the most well-known brands in the world such as McDonald’s, Planet Fitness, and 7-Eleven are franchises. While there can be a certain level of risk in franchising your business, doing so is often the best way to spread your brand and make your business even more successful than it already is. Turning your business into a franchise is not a decision to take lightly, however. Read on to learn tips experts say will help you avoid pitfalls as you franchise your business.
Research, Research, Research
The most successful businesses are those that address the unfulfilled needs that customers currently have. If the market is already saturated with landscaping companies and your landscaping business does not offer anything new or different, opening a franchise could be disastrous.
It is critical to do your research before franchising. Find a unique niche that is not already filled by your competition. A good place to start your research is the International Franchise Association (IFA). The IFA has many resources that can help you get started in this exciting business endeavor.
Meet with a Franchise Attorney
One of the most challenging and time-consuming parts of franchising your business will likely involve the legal aspects of business ownership. For example, you will need to prepare a disclosure document called a Uniform Franchise Offering Circular (UFOC) if you wish to offer franchises for sale. This is only one of many pieces of documentation you will need in order to successfully franchise. It is critical that these steps are completed accurately, so consulting a professional is highly advised. A qualified business law attorney with experience helping business owners franchise their companies can be a tremendously valuable asset.
Consider How Your Franchise Locations Will Be Managed and Run
When you own your own business, you get to be in charge of major decisions about the company as well as day-to-day operations. It is important to keep in mind that when you franchise your business, you are inviting the franchisee to take on a great deal of responsibility for your company. If a franchise location is poorly run, it can tarnish the reputation of your entire business. It is critical that any business owner wishing to franchise ensure that the company’s approach to service, sales, and production can be repeated at the new location. Furthermore, make sure you thoroughly vet your potential franchise partners so that you choose a franchisee who is as invested in the company’s continued success as you are.
Contact an Arlington Heights Franchise Lawyer
For help with a wide range of business needs, including franchising concerns, contact the experienced Illinois business law attorneys at A. Traub & Associates. Call us today at 847-749-4182 to schedule a personalized consultation.
Sources:
https://www.inc.com/guides/201107/how-to-franchise-your-business.html
https://www.entrepreneur.com/article/66178
https://www.thebalancesmb.com/what-is-a-franchisor-1350575