In my over three decades experience as a franchise consultant, I am often asked “When franchising your business, what are some of the most important considerations?” Here, I will examine one of those issues: when franchising your business, how do you create the right support system for your franchisees?
When franchising your business, the success of your individual franchisees determines, in large part, your ability to grow your franchise program. By federal law, your franchise legal documents must contain two lists: one of current franchisees and another of franchisees who left the system within the past year.
These lists enable your prospects to contact your existing and former franchisees to find out if they are happy with you. For this reason alone, it is important to provide meaningful support to your franchisees when franchising your business.
Another important reason to provide the right support when franchising your business: the money a franchisor earns is often a percentage of the franchisee’s gross revenues. Frequently, when franchising your business, the more support you provide your franchisees, the more money they will generate and, in turn, the higher the royalties paid to the franchisor.
For these reasons, as part of our franchise consulting services, NFA helps you carefully plan the ways you will help your franchisees succeed when you are franchising your business.
The type of initial support will vary with the specific business concept being franchised. When franchising your business, some or all of the following questions may apply: