With franchising, you can expand your reach and boost your margins without significantly increasing your capital cost.
However, this business strategy will need a lot of operational planning to ensure your business is ready for the shift. And mental preparation to ensure YOU are prepared to become a franchisor.
So is franchising right for your business? And how do you do it successfully?
In this episode of Help! My Business Is Growing, my guest April Porter discusses all things Franchising: how to get started in turning your business into a franchise, the qualities of a successful franchisor, who can help you set up your franchising business, and more.
Timestamps for this week’s episode
- 05:48 If someone is thinking of turning their business into a franchise, where do they start? What is the process?
- 11:37 What are the foundations that you need to have in your business to be a successful franchise or to be able to offer to your franchisees?
- 15:57 What does a successful relationship between the franchisor and the franchisee look like?
- 22:51 What do franchisees need to be successful? What exactly is in the franchisee’s playbook? Does it include processes, procedures, brand image, or all of the above?
- 34:34 What next step can business owners take this week to get them closer to turning their business into a franchise?
“(When franchising) You have to understand what the differences are going to be in the geographical locations, and you may need to make some adjustments based on those types of cultural and geographic differences.” – April Porter
If someone is thinking of turning their business into a franchise, where do they start? What is the process?
The process of turning your business into a franchise is complex. There are a few ways to go about it and take note that it will require a potentially hefty investment of your time and resources.
You can start by doing some research on Google and reading books about it, which you can find on Amazon.
There are also franchising lawyers or franchise attorneys who specialize in franchising, work with franchisors, and provide legal guidance and advice to potential franchisees.
And finally, you can consult with a franchise development firm that specializes in helping businesses set up and launch their franchise models.
What foundations do you need to have in your business to be a successful franchise or to be able to offer to your franchisees?
- It would help if you had a business coach.
You’ll soon be a business coach for all your franchisees and need to learn how to coach them to run their business successfully. You also need someone to ask you tough questions about your business.
- You want to have an established, successful model.
Your business needs to be a proven model, with at least two to three locations, especially if you want to attract multi-unit capable franchisees. You need to know what it’s like to be a multi-unit owner yourself.
- You’ll need to know how your product or service is received in different geographical locations.
If you are aware of the peculiarities of your target audience in different locations, you’ll be able to easily make adjustments so you can still cater to their need.
“Leaving (your) ego at the door sums (being a franchisor) up pretty much. You’ve got to keep your humility and understand that there’s a ton of opportunity (with) having 100 heads thinking about how to make a brand better just than a single head.” – April Porter
What does a successful relationship between the franchisor and the franchisee look like?
Franchisees must be able to trust franchisors to lead them to success. On the other hand, Franchisors should leave their egos at the door and listen to their franchisees, especially if they share insights about the operations.
What do franchisees need to be successful? What exactly is in the franchisee’s playbook? Does it include processes, procedures, brand image, or all of the above?
Franchisees should always have their playbook or operations manual on hand, which should teach you how to operate that model to profitability.
It should also contain the following:
- Brand/branding standards (logo, colors, etc.)
- Brand USPs
- Customer information
- Customer experience
“We can always find at least three alternatives to hiring another person if we’re open to looking for those opportunities. So start with the processes and systems, and then layer the people on top of that.” – April Porter
Book a strategy session with a franchising expert!
An expert can help you work through all your questions:
- Should your model be franchised?
- Should it be franchised right now?
- Do you need a plan to grow your business, get your systems and processes in place, open that second location, and see how it will impact your margins?
This plan will make it easier for you to market your franchise with an eye to multi-unit growth.
- To start turning your business into a franchise, you can initially inquire with franchise attorneys or consult a franchise development firm to help you set up your franchise model.
- You’ll need :
- A business coach to help you
- An established and successful business model to offer to franchisees
- Be open to changes in operations across your multiple locations
- A successful relationship between a franchisor and a franchisee entails complete trust and transparency, active listening and concern towards your franchisees, and breaking down walls of pride.
- A franchisee’s operations manual or playbook, which should contain all the branding standards, company USPs, customer information, and more, is an essential resource for every franchisee and can help them succeed.
- A franchising expert can help create that plan to ensure that when you pull the trigger to a franchise, you’re already set up to have what is truly a proven model. And then, from there, you can learn how to be a franchisor.
About guest – April Porter
Business Growth Strategist and CEO
Ask April Porter
April Porter is a business growth strategist, advisor to hundreds of franchisees, and CEO of Ask April Porter. She helps franchise owners accelerate their growth and profits in record time.
As an award-winning entrepreneur with a proven record of success in growth strategy, April has experienced first-hand the joy of building a business that creates a dream life.
Now, she is fulfilling her mission of teaching franchisees how to fill the gap between the franchise model & the executive-level know-how needed to increase revenues, build a reliable team, & scale to multiple locations.
Website – https://askaprilporter.com/
Podcast | The Infinite Franchisee Show – https://podcasts.apple.com/us/podcast/the-infinite-franchisee-show/id1570422370
About host – Kathy Svetina
Kathy Svetina is a Fractional CFO for growing women-owned businesses with $1M-$10M in annual revenue.
Clients hire her when they’re unsure about what’s going on in their finances, are stressed out by making financial decisions, or need to structure their finances to keep up with their growth.
She solves their nagging money mysteries and builds a financial structure with a tailored financial strategy. That way they can grow in a financially healthy and sustainable way.
Kathy is based in Chicago, IL and works with clients all over the US.