Many entrepreneurs are looking to turn their own company into a franchise in order to expand their business and take advantage of the significant growth that this segment has seen in recent years. The franchising method is increasingly seen as one of the alternatives for expanding a business without having to resort to investing their own capital or taking out bank loans.
One of the advantages of turning a company into a franchise is the dilution of risk. After all, when investing alone in the expansion of their own business, the entrepreneur assumes all the risks, whereas in the franchise system, this risk is shared among the franchisees.
Another advantage is in business management: when there is a single person directly responsible for all administrative matters, all responsibilities fall on that person. In the franchise system, this responsibility is shared.
There are also numerous advantages for franchisees. Starting a business from an existing model is much simpler than starting something from scratch. In addition, the business is already recognized and has credibility in the market.
Content
Can my business become a franchise?
The path of transformation
1 – Design of the franchise and franchisor business model
2 – Business plan
3 – Preparation of manuals and training for the franchisee
4 – Formalization of the franchisor
5 – Franchise Agreement
6 – Marketing strategies
Can my business become a franchise?
The beginning of the work of transforming a company into a franchise begins with the analysis of franchisability . Many people have doubts regarding the size of the business, however, even micro and small companies can become franchisors, entering the category of microfranchises , which are widely accepted in the market today.
When analyzing whether your business can become a franchise, the main topics to consider are:
Brand and differentials
Structure and processes
Business maturity
Financial performance
The step by step
The path of transformation
The process of transforming a company into a franchise, known canadian ceo email list as franchise formatting, can be quite complex. There are several courses and support materials available for entrepreneurs who have this goal. The roadmap below shows, in general terms, the path that must be followed by a company that intends to become a franchisor:
1 – Design of the franchise and franchisor business model
The entire franchise business model must be thought out in advance, after all, this is the model to be followed and must work in the most diverse locations and for different entrepreneurs. It is also necessary to think about and define the franchisor model, determining what will be provided to the franchisee, what forms of revenue the franchisor will have, whether royalties will be fixed or proportional to the franchisee's revenue, among other aspects.