How to create your turnkey franchise?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today we often hear about how another successful business project started selling its own franchise. It seems that only this model can be used to develop your business. Of course, this is not the case.

However, there is still something special about launching your own franchise. It is not for nothing that many companies are really trying to attract partners to develop their brand and expand their network of representative offices. About how to create your own franchise and why you need to strive for this, we will tell in this article.

General information

To begin with, we will clarify what exactly is meant by the term “franchise” and what benefits the seller and buyer receive from it. So, this category is represented by a business model that involves the transfer of the right to use a well-known brand (and, therefore, its reputation), technology, even the experience of a company that sells a franchise to the person acquiring it.

Thus, the concept denotes a special type of civil law relationship that often takes place in practice (namely, in economic activity).

Which companies are offering the sale?

Most often, when asking the average person about what examples of successful franchises he knows,in response, you can hear: "McDonald's!" This is really the most famous company today, providing the opportunity to work under its own brand. However, it is far from the only one.

In Russia, there are a huge number of small companies that give out the right to open their representative office under their brand. What is most interesting, such relationships can arise in any area of business: restaurants and cafes, car workshops, personal services, software development, and so on. In fact, the list of those areas where the rights to work under a false name are conceded is very long: the vast majority of companies with a regional network attract partners to accelerate the increase in the number of their branches in order to increase the number of customers loyal to the brand.

How to become a customer?

A person who wants to acquire the right to open under a particular brand must take a number of certain steps to meet the requirements (if any). The rigidity of the criteria by which a company selects a buyer depends on its level of income and popularity in the market. A larger business charges a higher lump-sum (initial) fee and also charges a higher roy alty (a recurring fee expressed as a flat amount of cash or as a percentage of the income received by the buyer).

Therefore, if you are looking for how to create your own franchise, you should navigate and install for yourbuyers these options. To do this, you need to understand how attractive your business is, how many people will want to acquire the right to work with your brand and how much they will be willing to pay.

Sale Targets

In search of answers to the question of how to create your own franchise, you need to decide which model you want to focus on. Simply put, ask yourself the question: why are you selling it? What are you pursuing, what do you want to achieve?

There are two most common goals you can pursue. The first is to increase the popularity of your brand, expand your business. In this case, it is necessary to set prices for the franchise that are acceptable to potential customers, offer partners various support materials, and perhaps even conduct training, trainings and courses. By doing all this, you will understand how to create a long-term and development-oriented franchise of your business.

The second way is to earn money. Companies following it seek to capitalize on customers by setting the highest possible lump-sum and roy alty rates, while not paying attention to training their partners. This is, of course, a shorter-term strategy, as it is unlikely to get you very far. Very soon it may happen that your partners close, or simply no one will buy the franchise due to its low attractiveness.

Own example

Another important item for every right selleron your brand - this is an example of the success of your company. You can only think about creating a master franchise if you yourself have reached certain heights in this area and know how this segment of the business works. Only by showing by your own example what profits can the buyer receive, you can interest him. In any other case, your offer will be unattractive: who will buy a "rod" from a fisherman who himself does not know how to fish with it?

Legal component

Don't forget contracts, commitments and boring legal paperwork. By entering into a franchise deal, you are actually sharing your brand reputation with someone. To some extent, you endanger your business by offering this form of cooperation. So be careful.

How to treat the buyer, we will tell a little further; but if you want to create a turnkey franchise yourself, contact lawyers for help with a contract. After all, having a ready-made business, you can already sell the right to use its name. It is enough to find a buyer and agree with him about how much he will pay you and how he should conduct his business under your brand name (if any).

If the person who bought these rights from you violates the terms of the contract, the latter should provide for a mechanism for applying sanctions to such a buyer. Do not spare money on legal advice on this matter. Trust me, it will cost more to protect your company's reputation.

Checking buyers

If you want to create a turnkey franchise, do not forget about the criteria for selecting your buyer partners. Check what the person was doing, how successful he was before, does he have the necessary business qualities, knowledge and skills? Does he have enough resources to get into this business?

All this is necessary, firstly, to select a reliable person who can be trusted with the right to work with your brand; and secondly, this way you can select a partner who will earn on your behalf and, at the same time, share their earnings with you. In addition, it will represent your business in other regions, so be careful with it. Carry out the maximum number of checks, including - after you start working together. If you want to know how to create a franchise yourself, it is important to care about the quality of the work of the buyer.

Search for partners

We have already noted that in order to think about selling a franchise, you must have your own operating business. In addition, it must be successful and prosperous - so that the buyer can see what results he himself can achieve. In addition, if you want to create a turnkey franchise in Tyumen (or any other city), you need advertising. Who will be the entrepreneur who will enter into a partnership agreement with you? Who will pay to work with your brand?

There are several options here. You can participate in various franchise exhibitions that are held regularly among business representatives. Learn how to create yourfranchise, you can apply there and offer your business.

You can also indicate on your outlets information that the right to work with your brand is being sold. Thus, everyone will be able to contact the contact information you provided and find out what he needs to do to get started. Finally, you can submit information about your business to special directories on the Internet.

In fact, there is nothing complicated about how to create your own franchise. It is much more difficult to start a business that will be profitable to distribute in this way. And, of course, after that it can be difficult to find partners willing to invest in your project and work with you.

In general, the step to develop your franchise is very bold and at the same time promising. Good luck to you!