How to Franchise Your Business in 7 Simple Ways

Franchising
  • Franchising a business is very popular in the fast growing and changing business environment all over the world.
  • But it's not as easy as it may sound at the beginning. There are a lot of factors to consider, such as the suitability of your business and your own preparedness to franchise your business.
  • If you want to learn how to franchise a business, you will have to know these 7 simple steps.

how to franchise your business

Want to grow your business, raise capital and know franchising may be an option but you are unsure what’s really involved? Well, franchising is a great way to grow your business, often allowing you to expand locally, interstate and even internationally.

But it can cost thousands of dollars, take lots of work and, if you don’t get it right, fail – horribly.

So how do you:

  • Decide if franchising is right,
  • Find out how to franchise a business and its cost,
  • Avoid the pitfalls and find out exactly what franchising is about?

Franchising is not just about preparing the documentation and recruiting franchisees. First you need to get some crucial things right, including budgets, territories and marketing – and it has to be profitable for everyone in the long term. Fail this profitability test, and your new franchised business will not succeed. Get it right and it can grow exponentially.

There are 7 simple steps on how to franchise a business

  1. Learn about franchising and franchise opportunities: How does franchising work? 
  2. Work out your businesses feasibility study and business plan: Is your business suitable? Does it suit you?
  3. Develop you franchise model: Prepare franchise documents and the legal agreements. 
  4. Develop your franchisor business: Get your franchisor business up and running.
  5. Establish a franchisee pilot: Operate a franchise outlet successfully.
  6. Recruit your first franchisees: Advertise, select carefully, open the first outlet and grow from there.
  7. Manage your franchise business into the future: Develop the group as a whole, keeping it current and fresh. 

Now that you know the 7 easy principles of how to start a franchise business, are you ready to do it? 


Brian Keen

Owner at Franchise Simply

Having worked in the franchise sector for over 30 years and helped business to grow by over $3bn in that time, I believe franchising offers one of the most exciting business models around for anyone looking to create real wealth and financial independence for themselves. See www.franchisesimply.com.au/ email brian@howtofranchisesimply.com.au or call 1300 960 136.

Franchise Simply

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Phil Khor

Phil Khor , Founder at SavvySME

Great article Brian. Short and punchy. I'm curious about Step 2. I'm sure there's an exhaustive list of feasibility test somewhere, but what are some of the high level considerations business owners here at SavvySME need to consider if franchising suits their businesses? Thanks for sharing.