1. Analyse the concept you want to franchise. Will it work?
2. Consult a solicitor for legal advice.
3. Draw up a business plan and approach the bank.
4. Define the franchise package and work out exactly what you will be offering.
5. Draw up a legally binding contract and make sure it’s watertight.
6. Prepare a pilot to road test your idea.
7. Advertise in local journals in your pilot area and in national franchise journals.
8. Select a franchisee. It is vital to get the right person to start with.
9. Start the pilot and provide as much support to the franchisee as possible.
10. Monitor the franchise and learn from the results of the pilot.
11. Review the franchise on a regular basis and never allow it to become static.
Do's and Don'ts
Do:
Get legal advice about securing your trade name or trademark and when drawing up a contract with the franchisee.
Select regions for franchising and suitable franchisees with care.
Remember how long it took for you to get a foothold in the market - be patient with the franchisee.
Make sure that you can regain control of the franchise if necessary at the end of the franchise agreement.
Don't:
Forget to pilot the franchise first.
Just leave the franchisee to it without providing advice and training.
Be too restrictive in the franchise contract - allow for innovation by the franchisee.
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