Today we often hear about how another successful business project began selling its own franchise. It seems that only on this model and you can develop your business. Of course, this is not so.
However, there is still something special in launching sales of its franchise. No wonder many companies are really trying to attract partners to develop their brand and to expand the network of representative offices. We will talk about how to create your franchise and why you need to strive for this in this article.
General information
To begin with, we will clarify what exactly is denoted by the term “franchise” and what benefits the seller and the buyer receive from it. So, this category is represented by a business model that involves the transfer of the right to use a well-known brand (and, therefore, its reputation), technology, even the experience of a company that sells a franchise to a person acquiring it.
Thus, the concept denotes a special type of civil law relationship that often takes place in practice (namely, in economic activity).
Which companies offer a sale?
More often than not, asking an ordinary person about what examples of successful franchises he knows, in response you can hear: "McDonald's!" This is really the most famous company to date, providing the opportunity to work under its own brand. However, far from the only one.
In Russia, there are a huge number of small companies that distribute the right to open a representative office under their brand. What is most interesting, such relationships can arise in any business field: restaurants and cafes, car workshops, consumer services, software development, and so on. In fact, the list of areas where the right to work under a false name is assigned is very large: the vast majority of companies with a regional network attract partners to accelerate the increase in the number of their branches to increase the number of customers loyal to the brand.
How to become a customer?
A person who wants to acquire the right to open under one or another brand must take a number of certain steps aimed at meeting the requirements (if any). The rigidity of the criteria by which a company selects a buyer depends on its level of income and market popularity. A larger business puts up a higher lump-sum (initial) fee, and also sets a higher royalty (regular fee, expressed as a fixed amount of cash or as a percentage of the income received by the buyer).
Therefore, if you are looking for how to create your own franchise, then you should orient yourself and set these parameters for your customers. To do this, you need to understand how attractive your business is, how many people will want to acquire the right to work with your brand and how much they will be willing to pay.
Sales objectives
In the search for answers to the question of how to create your own franchise, you need to decide which model you want to focus on. Simply put, ask yourself: why are you selling it? What are you pursuing, what do you want to achieve?
There are two common goals that you can pursue. The first is building up the popularity of your brand, expanding your business. In this case, it is necessary to set franchise prices acceptable for potential customers, to offer partners various auxiliary materials, possibly even to conduct training, trainings and courses. By doing all this, you will understand how to create a franchise for your business, focused on the long term and development.
The second way is earning. The companies that go through it tend to make money on customers by setting the highest rates for lump-sum fees and royalties, while not paying attention to the training of their partners. This, of course, is a shorter-term strategy, since it will hardly lead you far. It may very soon happen that your partners close, or simply no one will buy a franchise in view of its low attractiveness.
Own example
Another important point for each seller of the right to their brand is an example of the success of their company. You can think about creating a master franchise only if you yourself have reached certain heights in this area and know how this segment of the business works. Only by setting your own example, what profit can a buyer receive can you interest him. In any other case, your proposal will be unattractive: who will buy a “fishing rod” from a fisherman who himself does not know how to fish with it?
Legal component
Do not forget about contracts, obligations and boring legal documentation. By entering into a franchise sale deal, you are actually sharing the reputation of your brand with someone. To some extent, you jeopardize your business by offering this form of cooperation. So be careful.
About how to relate to the buyer, we will talk a little further; but if you want to create a turnkey franchise yourself, contact your lawyers for help with a contract. After all, having a ready-made business, you can already sell the right to use his name. It is enough to find a buyer and agree with him about how much he will pay you and how he should conduct his business under your brand (if any).
If the person who has bought these rights from you admits a violation of the terms of the contract, the latter should include a mechanism for applying sanctions to such a buyer. Do not spare money for legal advice on this matter. Believe me: in which case, protecting the reputation of your company will cost more.
Buyer Check
If you want to create a turnkey franchise, do not forget about the selection criteria for your partner customers. Check what the person was doing, how successful he was before that, whether he has the necessary business qualities, knowledge and skills? Does he have enough resources to enter this business?
All this is necessary, firstly, in order to select a reliable person who can be trusted with the right to work with your brand; and secondly, so you can select a partner who will earn on your behalf and, at the same time, share your earnings with you. In addition, he will represent your business in other regions, so be careful with him. Conduct the maximum number of checks, including after you start working together. If you want to know how to create a franchise yourself, it is important to take care of the quality of the buyer's work.
Partner search
We have already noted that in order to think about selling a franchise, you must have your own operating business. In addition, he must be successful and prosperous - so that the buyer sees what results he can achieve. In addition, if you want to create a turnkey franchise in Tyumen (or any other city), you need advertising. Who will become the entrepreneur who will enter into a partnership agreement with you? Who will pay to work with your brand?
There are several options. You can participate in various franchise exhibitions held regularly among business representatives. After learning how to create your own franchise, you can apply there and offer your business.
You can also indicate on your sales outlets that the right to work with your brand is being sold. Thus, everyone will be able to contact you by the contact information you provided and find out what he needs to do to get started. Finally, you can submit information about your business to special directories on the Internet.
In fact, there is nothing complicated in how to create your own franchise. It is much more difficult to start a business that will be profitable for distribution in this way. And, of course, after that it may not be easy to find partners who want to invest in your project and work with you.
In general, the step of developing your franchise is very bold and at the same time promising. I wish you success!