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: 

  • What are your pre-opening training programs?
  • Will you provide any equipment, inventory or furniture to the franchisee before opening, either for sale or on a free basis?
  • Are you offering guidance in site selection, lease negotiation and/or facility design?
  • When franchising your business, will you supply sample floor plans or architectural plans?
  • Will any franchisor personnel be on site to help open the business?
  • When franchising your business, do you help your franchisees with their sales efforts?
  • Will you help your franchisee put together an initial marketing plan?

When franchising your business, you must also put together your on-going support programs for your franchisees.  Address the following issues:

  • What customer service support does your franchise program incorporate?
  • What guidance are you prepared to provide in managing business operations, such as bookkeeping, insurance, customer tracking, records keeping and other administrative areas?
  • When franchising your business, what quality control programs are necessary?
  • What information and forms are franchisees required to submit to you?
  • When franchising your business, what field support will you offer?
  • Does the franchisee have to purchase any items from the franchisor on an on-going basis?
  • If a problem occurs, how can it best be resolved?
  • How can you provide these services cost effectively?

In short, when franchising your business, you must design workable programs that enable you to provide the assistance your franchisees will need to achieve initial and on-going success.

Thinking About Franchising?

NFA Franchise Consultants have the experience to help businesses franchise.  Just watch and listen to some of our client case studies and video testimonials.  We can HELP YOU and it doesn’t cost anything to call and talk to us! 

So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form.  We look forward to helping you take your business to the next level and beyond.