Franchising TNT

To have a good reputation with franchisees and in the franchising industry, it is important that franchisers have an ethical framework to operate by. In addition, franchisees should behave to certain standards so that they can progress their business(es).

Many companies are members of associations, such as the International Franchise Association or the British Franchise Association, that have an ethical code structure in place. These codes are a way for franchisers to self-regulate and franchisees to have a good idea of the role they need to play in making the franchise as a whole more successful. They will not have an answer to every dispute, but a set of principles will be established to ensure problems are dealt with correctly and as amicably as possible. Therefore, franchisers that are not involved with associations should still have a set of guidelines for themselves and franchisees to work from.

At the cornerstone of any code that has been or should be devised is honesty and trust. There should be no ambiguity when franchisers advertise for franchisees and in what franchisees tell franchisers about their past and current financial situation. Each party needs to fill their part of the agreement and be open about any problems that occur, which will mean both the franchiser and franchisee knows exactly where they stand.

Once a franchise is up and running, both parties need to have a system in place where it is ensured that when one gets in touch with the other, by phone or email, it is picked up quickly and a response is swiftly made. Effective communication will help to create trust between franchisers and franchisees and it is also important for the financial progress of franchises, for example if a sales system is not working, the sooner an improved version is discussed and implemented the more money a franchise will make. A code should highlight the need for teamwork and mutual respect between both parties so that franchisees get a degree of responsibility to improve their franchise systems, as long as they work within the business structure.

Franchisers should also recognise and give awards to franchisees that achieve better than expected results and show major commitment to the franchise. In addition, as part of the franchise agreement, there should be a straightforward method for dealing with internal disputes and all national and state laws concerning franchising must be strictly followed.

Following a structured code with these and other aspects will help to create a positive image and reputation for the franchiser and each individual franchise. Franchisers will be more likely to attract potential franchisees, as most of them will talk to current franchisees before making a decision on which franchise they want and franchisees will benefit from high levels of consumer loyalty and satisfaction.

Just have a look around the franchise industry and you will be amazed to find that most of the top franchise companies have humble beginnings. Many of the brands that are popular all over the world started as a small family business and through franchising have turned out to be popular. To franchise your business you need to have knowledge about how to franchise in the right manner to ensure success. Thus, if you dream of making your business big and successful, you can consider franchising your business.

There are many business owners who get confused as how to franchise my business. Well, before taking the decision to franchise your business, you need to go through a lot of preparations. It is not just a decision that can be implied within a day. Give some time to research and analyze the market before coming to a conclusion as how to franchise my business. Take help of a franchising consulting firm or some experts to help you make the right decision.

The very first thing that you need to understand is whether your business or company is good enough to undergo such a big a step. You can know if you can franchise your business if it possesses the following qualities:

Business Longevity: Franchise experts say that it is a good idea to franchise your business if it has been in operation for at least three consecutive years and generating profit. Also the size of your business should be good enough to attract other investors. Franchising will be successful only if the company possesses a proven track record of success.

Unique Business Concept: The competition in the franchising industry is quite high, so before deciding on how to franchise, make sure your business concept is unique and easy to duplicate. Organize your business system and concept before thinking of franchising it. Success in franchising industry is very much depended on how well investors are able to replicate your system and concept.

Profitable Business: Your business concept must have the ability to make money. Your business must have a consistent record of financial success so that investors can show their trust in your franchise business. Ultimately, it is the motive of everyone to earn and make money. If your business is profitable, it is just the right time to franchise your business.

Affordable Business Format: Most of the investors look at the initial investment while searching for the right franchise business opportunity. If the initial investment is very high then very limited people will be interested in buying your franchise. Along with cost of the franchise, investors also enquire about the return on investment. If your business format can promise high ROI, many will be interested in your business concept.

Marketability Factor: Before you franchise your business, make sure your business idea is easily marketable. Many companies franchise their business when many investors are asking them to franchise their business. This ensures that the business concept is very unique and that is the reason why potential business partners are ready to invest.

To conclude, if your business has that above mentioned qualities or attributes, you can plan ahead to franchise your business.

Franchising can offer a wealth of opportunity for you as a business man or woman. It can allow you to earn a good amount of money in using another person to run your franchise under your own name.

Nevertheless, you run the risk of a dispute arising out of the franchise at some stage. It could be that an argument arises over who is in charge of a certain part of the business. This is why it is crucial to consult with specialist franchising solicitors at the earliest stages of creating a franchise because it can save a lot of problems later on. They will help you put together a watertight contract which will clearly lay out your rights as franchisor and quite importantly will protect your IP rights, in particular looking after your trademark which is crucial to a successful franchise.

Different franchising opportunities have different levels of control attached to them. For example some will have more of a hands off approach than others, meaning that the franchisee has more freedom to operate the business however they see fit. As you may imagine though, as the franchisor you have to be sure your brand and business idea remain constant throughout. Developed and successful franchises can have up to hundreds of outlets across the UK and you will see that these outlets will all have certain level of consistency.

An expert franchising solicitor will offer you invaluable advice on how to create and set up the franchise to begin with. The processes you put into place now will help to protect your idea and business for the future. A solicitor can also make suggestions that could strengthen your overall idea as well as producing less chance of a franchising dispute in the future. Clearly you will want your franchise to be a stable success, the key to this is exercising a good amount of control over your franchisee’s right from the beginning.

It is worth mentioning however that if you try to exert too much control, you may potentially put off franchisees from buying into your business. Again it is worth discussing this with your specialist franchising solicitors before putting your plans into action. They will have plenty of experience in this area and can steer you in the right direction.

It is clear that it is highly beneficial to speak with an expert solicitor before deciding upon what level of control to exercise over your franchise. It may help you develop your franchise successfully and encounter a lessor amount off issues in the future.

You may already know the basic bones about franchising and what it could mean for you. If you don’t want to create your own business from scratch, the next best thing could be to buy into a franchise. In fact it can often be a better solution because the framework of the business is already there for you, and it has also been proven to be a success.

However it would be unwise to go ahead and dive into the first franchise you find without getting decent franchising legal advice first. This is available from franchising solicitors – solicitors who have chosen franchising as their particular speciality.

Before you go and find a solicitor to help you, it is a good idea to think about a franchise opportunity so you have some good questions to ask. In some cases it might be better to narrow down your choice of franchises first. This means you will have a good idea of the type of franchise that will suit you, so that you have some concrete questions to ask.

Franchising solicitors can give all kinds of franchising legal advice to budding franchisees. Don’t be afraid to ask any of the questions you are thinking of – the chances are that other people will already have asked them at some point! It’s good to have all your questions answered before you make the final decision on which franchise to opt for. Remember that this is a major decision in many ways – financial as well as business related – and it will affect your life in lots of ways. It makes sense to get as much franchising legal advice as you can before you make such a decision.

It’s worth remembering that specialist franchising solicitors have lots of experience in the field. They will have dealt with many different franchise situations and clients. This means they will likely know the answers to most or all of the questions you want to ask without any research needed at all. While you may be able to find the answers to some of your questions initially without help, you are bound to have some unanswered questions at the end. These will need to be resolved before you go ahead and invest in the franchise you have narrowed your choice down to.

In any event franchising solicitors will be vital to you if you wish to make everything go as smoothly as possible. From answering your initial questions to providing franchising legal advice every step of the way, you can be sure you will arrive at the best possible situation.

If you are thinking of taking on a franchising opportunity, then you need to be sure that the business you are looking at is right for you. You will need to get specialist legal advice from an expert solicitor before you get involved in any contracting. Read on to find out more information.

What kind of business is it?

Franchise solicitors will tell you that if you are going to invest in a particular brand, you need to be confident that it’s something you could handle. Look at the business you are thinking of investing in and do some research into the relevant market. Have you worked in the area before? Does it offer the kind of work you enjoy? Would it involve working with customers or business-to-business? Having answers to these questions will help you determine whether the opportunity is right for you.

Is the business doing well?

Not all businesses are right for franchising, which is why you should always seek franchising legal advice before accepting an opportunity. The business in question should have been established for a while and it should be successful; after all, it doesn’t make much sense to buy into a business that is undoubtedly failing. You need to be confident that the state of the current business is healthy and that it has potential as a franchise.

If the company already has some franchisees, you should talk to them before you consider getting involved. This can give you a better idea of what it might be like to work with the company and how much freedom you would have to run your own business under the pre-existing brand.

Where is the business based?

You should also look at issues such as where the business is based, as some opportunities are highly local and so might not be right for your area. If you’re thinking of opening a franchise some distance away from the parent company, you need to be certain that the market is suitable for it. This is where your research comes in; your franchise solicitors will be able to give you advice if you need it.

How much does it cost?

One of the most important things to think about it how much buying into the business is going to cost. There will be an up-front fee that you need to pay to the parent company and then you’ll also have to pay them royalties based on your profits. Your business will also have running costs and you’ll need to build in legal costs, too; you need to be certain you can afford it all before you agree to anything.