Creating a franchise system is rewarding if done right. A well-planned franchise system plan makes it easier to scale with less time spent on solving problems and more time on scaling it. One needs to understand that a brand becomes successful in the franchise world because of its product/service and the financial gains it could provide to its franchisees. If the business model is not profitable, it will not attract interest from those interested in running a franchise business.

At VanLonChan, we work with Franchisors in the planning of a new franchise system and analyzing existing one. We assist our clients in business development, financial planning, marketing and branding, quality control, store audits, tech implementation, and vendor management with the procurement of products at a reduced price.

Based on our consulting services to clients franchising their business model, we would like to share steps you can follow to convert your business into a franchise:

1. Create a Team: Franchising a business involves numerous activities, hire the right-fit team members or consultants who can work with you in making your plan successful.
2. Develop a franchise model: A detailed business plan with a strong financial analysis outlining your business’s operating procedures, marketing strategies, quality control, audits, and other key elements is required. Do the number crunching on a franchise store’s business model and its profits.
3. Create a franchise agreement: A franchise agreement outlines the terms and conditions of the franchise relationship, including the rights and responsibilities of both the franchisor (you) and the franchisee (the person purchasing the franchise).
4. Develop training and support systems: As a franchisor, you will be responsible for providing training and support to your franchisees. This includes initial training, ongoing support, and access to marketing and operational resources, regular problem-solving.
5. Determine the franchise fee and ongoing royalties: The franchise fee is the initial payment made by the franchisee to the franchisor in exchange for the right to use your business’s name and operating system. Ongoing royalties are periodic payments made by the franchisee to you as a percentage of their sales.
6. Recruit and screen potential franchisees: This involves finding and evaluating potential franchisees to ensure they have the necessary skills, experience, and financial resources to successfully operate a franchise.
7. Finalize the sale: Once you have found a qualified franchisee and both parties have signed the franchise agreement, the franchisee will make the initial franchise fee payment and begin operating the franchise.

​It’s important to note that converting your business into a franchise can be a complex process, and it may be helpful to seek legal, financial, and business management advice from experts to ensure that everything is done properly.