Developing a franchise

There are two approaches on how to create a franchise. The first approach entails the franchising of an existing business that has been tried and tested. If acquiring capital for expanding the business to answer the market demand cannot be achieved in a timely manner, franchising may be a good alternative. The second approach is to develop the business from the start with franchising in mind.

Both approaches require the understanding of the following concepts to successfully franchise a business.

Simplicity and adaptability are key ingredients of a successful franchise. The business system that provides goods or services should be replicable in an inexpensive manner. Training the franchisee to operate the business in the same manner the franchisor does should not be lengthy or costly. In addition, the franchise should be adaptable to changes in the marketplace and innovate the business system if it is to survive a long period of time.

The final key ingredient is the image of the franchise. The image of a business should be developed and the intellectual property rights protected before franchising becomes a viable option. In essence, the image of the franchise is what the franchisees are purchasing and that is why it is crucial for the franchise to maintain a good public image.

For more information on how to properly develop a franchise, contact franchise attorney Mario
Herman.