You have a viable company and are ready to spread your wings. So what is the next step? Regardless of how successful your business may be, it is important to know when to franchise your company. Before you begin the process of franchising your company, you need to start and operate at least 5 corporate owned stores.
Why do you need corporate stores?
Having 5 or more corporate stores allows you to build a brand and gather all the information you need to start a franchise, such as the cost of opening and running the stores. You cannot rely on estimates given to you by “experts.” Ultimately, you are responsible for the numbers you provide to your potential franchisees.
Once you have owned and operated a minimum of 5 corporate offices for at least a full year, you can then approach the task of franchising your company, armed with the knowledge and experience necessary to succeed.
Start small and slow
Too many people rush into the decision to franchise their company. Time has shown that those who approach the daunting task of franchising a company on a smaller scale and in a slower manner tend to have greater long lasting success.
Be prepared to help your franchisees
By forcing yourself to run at least 5 corporate offices for a full year, you are able to gather invaluable information and experience, which you can pass on to your franchisees. You should be able to anticipate any problem or question that they may have. Remember, their success or failure will reflect on your brand as a whole.