What is franchising a company, 4 practical tips

What does franchising a company (or a business) really mean?

If you want to know what is franchising a company or an organisation, the following lines will be useful. They will provide you with a series of practical tips to deal with the transformation of your company into franchises with guarantees. In this way to be able to succeed using this formula of trade agreements.

The essence of the franchise is found in:

• The business model: At a minimum it must be profitable.
• but also in the entrepreneur who has launched it: His vocation for growth must be indisputable.
• and in the organization that maintains it : He must be able to fulfil his missions as a company owner.

Its constant projection is that which ensures that the value proposition remains in force in the market and is attractive to customers, to future and current franchisees.

But before you start franchising a company, what advice should you keep in mind ?:

1.- Can I franchise my firm? Check it out

They are the key to check the franchiseability of the business model:

1. Profitability and success of the model: An invariable axiom is that only successful firms can be done. Those that contribute to the market a value that does not exist. Concepts that allow amortization of investments in periods shorter than what would be achieved with a conventional business. It is certainly not the only variable that an investor contemplates, but one of the most valued.
2. Reproduction capacity in other environments: It is essential that the model can be developed in other markets, in short, that does not respond to the specific circumstances of an environment, without which, commercial success would not be possible.
3. Transmissibility of know-how: The concept must not be anchored in the personal capacities of the entrepreneur who has set it in motion, must be able to achieve similar or better results in the hands of people with adequate training and skills, but should not require Profiles especially hard to get. Those activities that depend heavily on its founder are hardly going to succeed in the hands of third parties and the franchise is revealed in these cases as a little useful tool.

2.- What is franchising a company, which assumes me as an entrepreneur?

Franchising a company is totally changing the focus of the business. It is about opening an angle towards new customer profiles, current and future recruits.

It means a change in the organization, modifying the organisation's missions and expanding them to accommodate the new needs that the franchise system requires. Among these we can highlight the following:

• Grow, recruitment of workforce: Increase the number of units, by exposing our model and attracting candidates interested in it.
• Attend, provide services to recruits : to achieve the expected economic results and the expected level of quality.
• Train, provide the knowledge to meet the shortcomings of franchisees in relation to the model
• Supervise, control the application of know-how under the conditions provided, identifying possible deviations and distortions of it.
• Provision, provide the products and services that franchisees need to develop their business model.
• All this from the point of view, not of employees but of "partners", with which these functions acquire a new dimension.

3.- Value your ability to take on the challenge of franchising

It is not so important to take into account the current situation, such as the vision, the disposition and the possibilities to adapt this structure to the future needs of the model.

From the moment a businessman decides to take the path of franchising his company, this is the first element that he must check, because it will depend on him that the project has the right bases or stays halfway.

This translates into assuming that all operators, franchisees, that are incorporated into the organization, have specific needs that must be dispensed from the centre. Am I willing to lend them?

4.- Join with professionals

It involves aligning different disciplines, marketing, legal, strategic, economic, graphics.

To achieve the highest level of performance possible in all of them, it is necessary that experts accompany us in this process. This accompaniment can be advising, or taking care of certain content directly, be it the generation of new recruits, the drafting of a contract, the preparation of manuals, etc.

The configuration of a good, broad and multidisciplinary team is the best foundation. Of course, it should always be led by a franchise expert.