How to Franchise a Business

How to Franchise a Business

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Franchising is one of the most reliable ways to grow a business and expand your brand. If you have a successful business model, a strong brand, and a loyal clientele, franchising may seem like the logical next step…but where do you start?


Franchising isn’t easy, even for experienced entrepreneurs. Luckily, there is help available. Franchise Genesis is committed to helping small businesses grow and succeed through franchising. If you’ve ever considered franchising but you aren’t sure where to start, read on to learn how to franchise your business.


  • Evaluate feasibility
  • Establish legal framework
  • Create franchise agreement, franchise disclosure document and other legal documents
  • Develop franchise sales strategy
  • Market the franchise opportunity
  • Train and support


1. Evaluate Feasibility

Franchising is not a solution for a struggling or unprofitable business. Before franchising, it is important to ensure that the business is generating consistent profits. Analyzing the financial statements and conducting a break-even analysis can help determine the profitability of the business.


Successful franchises are typically built around unique and innovative business concepts. Before franchising, assess whether the business has a unique selling proposition (USP) that sets it apart from competitors.


2. Create the Legal Framework

One of the key elements of the franchising process is creating a franchise model that outlines the legal structure, franchise agreement, and operations manual. Here are some important details to consider in this step:


Establishing the Legal Structure of the Franchise

  • Franchising involves a complex legal process, and it is important to establish the proper legal structure for the franchise.
  • This typically involves creating a separate legal entity for the franchise, such as a limited liability company (LLC) or a corporation.
  • Working with a franchise attorney to help navigate the legal requirements and ensure compliance with franchise laws.

Developing the Franchise Agreement and Disclosure Document

  • The franchise agreement is a legal document that outlines the terms and conditions of the franchise relationship between the franchisor and the franchisee.
  • The franchise disclosure document (FDD) provides detailed information about the franchise system, including financial statements, franchise fees, and other important details.
  • Both documents are required by law and must be carefully crafted to ensure compliance with state and federal regulations.

Creating the Operations Manual

  • The operations manual is a comprehensive guide that outlines the day-to-day operations of the franchise, including everything from how to prepare products to how to handle customer service issues.
  • The manual should be clear, concise, and easy to follow, and should be updated regularly to reflect changes in the franchise system.
  • Providing a detailed operations manual is critical to ensuring consistency and quality across the franchise network.


3. Develop franchise sales strategy

Developing a franchise sales strategy is an important step in franchising a business. Here are some key considerations for developing a successful franchise sales strategy:


  • Define Your Target Market: Identify the ideal franchisee profile and target market for the franchise, based on factors such as geography, demographics, and industry experience.
  • Determine Your Sales Channels: Determine the most effective sales channels for reaching potential franchisees, such as franchise broker networks, franchise trade shows, online advertising, or direct mail campaigns.
  • Develop Your Sales Materials: Develop compelling sales materials that clearly communicate the benefits of the franchise to potential franchisees, including a franchise brochure, website, and video.
  • Establish Your Franchise Sales Process: Develop a clear and efficient franchise sales process, including a system for lead generation, qualification, and follow-up with potential franchisees.
  • Train Your Sales Team: Train your franchise sales team to effectively communicate the benefits of the franchise to potential franchisees, and to be knowledgeable about the franchise system and support provided to franchisees.
  • Evaluate and Refine Your Sales Strategy: Continuously evaluate the effectiveness of your franchise sales strategy and make adjustments as needed to ensure that it is driving franchise sales and meeting your growth goals.


4. Market the franchise opportunity

Marketing the franchise opportunity is an essential step in the process of franchising a business. Here are some key considerations for effectively marketing a franchise opportunity:


  • Develop a Marketing Plan: Develop a comprehensive marketing plan that outlines your marketing objectives, target audience, key messages, and tactics for reaching potential franchisees.
  • Build Your Brand Identity: Build a strong brand identity for the franchise, including a logo, tagline, and visual elements that effectively communicate the brand's values and unique selling proposition.
  • Develop Your Marketing Materials: Develop high-quality marketing materials that effectively communicate the benefits of the franchise opportunity, such as a franchise brochure, website, video, and advertising campaigns.
  • Leverage Digital Marketing Channels: Leverage digital marketing channels such as search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, and email marketing to reach potential franchisees.
  • Attend Franchise Trade Shows and Conferences: Attend industry events and trade shows to connect with potential franchisees and build relationships with other industry professionals.
  • Partner with Franchise Brokers: Partner with franchise brokers and other lead generation services to expand your reach and generate more leads for your franchise opportunity.
  • Leverage Referral Marketing: Encourage your existing franchisees to refer potential franchisees, and develop referral marketing campaigns to incentivize them to do so.


5. Train and support 

Once a franchise opportunity has been marketed and sold to new franchisees, it's essential to provide comprehensive training and ongoing support to ensure their success. Here are some key considerations for effective franchisee training and support:


  • Develop a Comprehensive Training Program: Develop a comprehensive training program that covers all aspects of the franchise system, including operations, marketing, sales, and customer service.
  • Provide Ongoing Support and Resources: Provide ongoing support and resources to franchisees, including access to a dedicated support team, online resources, and regular communication and updates.
  • Conduct Regular Performance Evaluations: Conduct regular performance evaluations of franchisees to identify areas for improvement and provide feedback on their progress.
  • Offer Continuing Education and Professional Development: Offer continuing education and professional development opportunities to franchisees to help them stay up-to-date with industry trends and best practices.
  • Foster a Strong Franchisee Community: Foster a strong franchisee community by providing opportunities for franchisees to connect and share best practices, such as through regional meetings, online forums, and other networking events.
  • Continuously Improve and Innovate: Continuously improve and innovate the franchise business by soliciting feedback from franchisees, conducting market research, and staying abreast of industry trends and best practices.



Franchising is an incredible opportunity to reach new customers and increase your company’s capital. If you feel overwhelmed by the thought of doing so alone, you can get help. Franchise Genesis is an expert on how to franchise a business, and we serve hundreds of small businesses across the country that are looking to expand. We offer guidance with legal compliance, developing best practices, marketing and every other issue that may arise throughout the process of establishing your company’s franchise. For a free consultation, call us at (980) 737-0540 or reach out online.


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