Once the business idea has been successfully established on the market, the next step can be taken: establishing your own franchise system and thus the Business model expansion. We have summarized why it is worth setting up a franchise system and which points need to be considered.
What advantages does a franchise system offer?
If you want to expand your business idea, you can also do this by setting up a franchise system. Because this offers essential compared to a conventional branch system (external link). advantages for the franchisor such as e.g.:
- Broad marketing through national and international locations.
- High returns if the business model can be marketed well.
- No rental of business premises (the franchisee takes care of this).
- Regular income through revenue sharing (franchise fees).
These advantages show that entrepreneurs can benefit from setting up a franchise system. But before you get started, there are a few important points that need to be clarified.
Thoroughly examine the business idea
First of all, company founders should clarify whether the business idea is suitable for establishing a franchise system. For this purpose, the concept must be tested intensively and independently of location and people Strengths and weaknesses to check before starting to set up a franchise system.
Expand business plan
In the next step, it makes sense to use the existing business plan further information to expand by establishing a franchise system. Here, for example, a location analysis is used to clarify which locations are worthwhile. It can be said that branches will initially be opened in larger cities with more than 100,000 inhabitants and in medium-sized centers with high purchasing power. Another point in the business plan revision is to define the potential target group more precisely and to determine who should be addressed with the concept.
Prepare documents for franchisees
In addition, do not forget to create documents for future franchisees. These include, among others:
- Partner Guide
- franchise agreement
- manuals
In addition, a training concept should be created in order to prepare the franchisees as best as possible for their tasks and to be able to continue their education later.
Start a test business and find a franchisee
Once the concept is in place, you shouldn’t open several stores immediately, instead start with one pilot business sensible. This has the advantage that it can be checked whether the location and the prices are suitable and whether the planned figures can also be realized in practice. Errors can also be detected and eliminated early enough.
One of the last tasks for new franchisors is to find suitable franchisees who are interested in the business idea and want to become self-employed with a franchise system.
Business start-up advice helps with the preparation
In order for the franchise system to be able to establish itself successfully on the market and for the first franchisees to be brought on board, start-ups should take essential steps preparations meeting. Business start-up advice is the right address here. The consultant can work on the business plan together with the founder and answer questions about founding a franchise.