If your business is thriving, and you feel you have a great concept, you may be looking to convert your business into a franchise. This way, other people can open stores in various areas using your business idea and models. However, before you do this, there are certain things that must be covered. Here are a few of the most important steps to follow when converting a business into a franchise.
Determine if Your Business is Ready
Not all businesses are ready to be franchised out. Sometimes it’s too new, sometimes it isn’t successful enough yet and other times, your concept isn’t unique enough. Take the time to have a business analysis performed that will thoroughly evaluate and confirm that you’re ready to start franchising. Many business analysts will also help you prepare the financials and concepts that would need to be presented to potential franchise owners.
Work With a Franchise Attorney
Before you can franchise out your business, you will want to work with a franchise attorney. There are lots of documents you’ll need to file before you can turn your business into a franchise, such as the Franchise Disclosure Document. An attorney can help ensure that all of your forms have been filled out correctly, that they’re filed in the appropriate places, and that any binding documents are legal.
Create a Screening Process
The next step to converting your business into a franchise is to put a screening process in place. You don’t want to allow anyone and everyone to open a franchise. Most businesses have strict rules and restrictions as to who will represent their brand via a franchise. You want to make sure the person you are talking to has the financials to create the business and has the same vision for the business as you do. Sit down and carefully consider what qualifications you would be looking for in a business owner who wants to open a franchise with you.
Be Prepared for Change
The last step to follow when converting a business into a franchise is simply to be prepared for change. Running a franchise organization is very different from running a business, even if you do have a few locations. You may still be running your businesses while vetting potential owners interested in joining the franchise family. You may also want to continue to help your franchises grow and reach their goals, as their success is ultimately yours. Your life will change, so be ready.
Are you converting your business into a franchise? If so, you should always have a franchise attorney look over your paperwork and business documents. They can ensure everything is completed on time and in accordance with the law. When you are in this situation, contact Shelton Law & Associates. We can help with franchise business setup and would love to help with all of your franchise business needs. We are your outsourced, in-house legal counsel that will take you through the franchise establishment and expansion one step at a time. Give us a call today to set up a consultation.