Naperville Business Lawyer on Turning Your Company into a Franchise
Many of the best-known brands throughout the world are franchises. In the food and beverage industry, restaurants like McDonald’s, Taco Bell, and Subway operate on a franchise model, but there are major companies in other sectors that do as well, including The UPS Store, Planet Fitness, and CPR-Cell Phone Repair.
If you are a business owner, you might dream of reaching cities across the country and around the world. To do so, in many cases, you might need to become a franchise, and a seasoned business law attorney can help make your dreams a reality.
Know the Landscape
In order to establish and maintain a successful franchise, your company must address an existing need in a way that customers find valuable. Opening another run-of-the-mill fast-food burger restaurant, for example, may afford a level of success in certain markets, but if you do not have something that sets you apart from your competitors, your company could quickly fade into the background. You will need to do your homework to find a niche and need that is not currently being met by regional or national brands.
You must also conduct your market research in a way that makes sense for your intended growth. In most cases, this means you need to expand beyond your own backyard. Most business owners could open a second location across town without needing to franchise. If you wish to become a franchise, your goals—and the associated research—will probably need to be bigger.
Scalable Business Practices
If the success of your company depends on you being present and making decisions on a daily basis, you might need to think twice about franchising. For example, if you regularly come back after a few days off or from vacation to find a long list of problems for you to solve, your company is not a realistic candidate for becoming a franchise yet. The nature of franchising means that you are no longer involved in the daily operations of each location. It also means that your company’s approach to sales, service, and production must be able to be repeated no matter where a location is opened. It is acceptable to offer your franchisees a measure of flexibility to address unique local concerns, but the bulk of your processes must be systematized.
Selecting Good Franchisees
Attracting strong franchisees is a major part of a franchise’s success. If you want to get good people interested, there needs to be an incentive for them to get on board. In short, they need to be able to make money. As you build an attractive franchise, you will likely have many potential franchisees expressing interest—some of whom might just be looking to make a few bucks. Keep in mind that your franchisees will represent you, the brand, and your corporate image. When selecting new franchise partners, you will need to balance your franchisees’ drive for increasing profit with their dedication to the best interests of the company.
Contact a Naperville Business Law Attorney
There many other considerations that must be addressed as you take the steps toward turning your company into a franchise. To get the help you need, contact an experienced DuPage County franchise attorney. Call 630-756-1160 for a confidential consultation at the Gierach Law Firm today.