Writing a blog on any legal topic, it is easy to become immersed in the intricacies of the law. However, we would also like to address the concerns of those in our readership who are prospective franchisors or franchisees. So here is a small dose of common sense derived from our years of practice. The next edition will be for the benefit of franchisees:
Tips for Developing a Successful Franchise in New York
Transitioning a business model into a franchise system in New York isn’t easy, but if it is done right, it can be a profitable. When considering whether to franchise, there are a number of important points worth addressing to ensure success.
Funding
It is essential to plan first how to raise the appropriate amount of funds. Adequate capital is a necessity for branching out into a franchise business. The money will be needed to do marketing, advertising, hiring and training. Don’t assume that the existing business will generate enough excess capital to finance franchise development.
Branding
Once the money is in place, it’s time to sell the idea. Part of becoming a franchise is selling the business model and concept to potential franchise owners. It is crucial to develop a brand: a trademark system and style that will capture the buyers’ imagination. A sales staff may even be required to ensure proper selling and handling is done.
Support
Now that others have bought into the concept, it’s vital to offer support to franchisees. They need to know they are valued and critical. They will need proper and complete training, daily check-ins and support. Ensuring franchisees feel respected and encouraged will ensure success. You will need to develop the personnel and infrastructure to make sure this is accomplished.
Expansion
At all times, you must be considering and reconsidering whether to hire extra help or shed unnecessary weight. As business grows, bear in mind that one person cannot do it all. Maintain a position as president, CEO or simply the person in charge, but hire out the other positions to maximize growth and success.
Innovation
Finally, it is vital to never stop thinking about the next step in the development of your business model. Once the franchisee is trained and established, they should require less day-to-day interaction and will strike out on their own. But it is important for the franchisor to continue considering the big picture of the business – are the products new and enticing? Are the internal practices as streamlined as they could be to ensure maximum profitability? Continual innovation can help create a win-win for both the franchisor and the franchisee.
Becoming a franchise in New York is both an exciting and a scary process, and if done right, can benefit both franchisors and franchisees alike. Due diligence is essential before entering into any franchise business venture.
Source: Small Business Trends, “Want to Franchise a Business? 5 Sacred Rules to Become the Next Great Franchise,” Todd Taskey, January 20, 2011