Naperville Business Lawyer Offers Considerations for Prospective Franchisors
Some of the most recognizable brands in the world are run on a franchise model. Of course, several food chains probably come to mind quickly, such as Subway, McDonald’s and KFC, but serious players in other industries are also franchises, including 7-Eleven convenience stores, RE/MAX real estate companies, and Wyndham Hotels and Resorts. As a business owner, you may have visions of seeing your brand in cities around the country and throughout the world. While there are no guarantees in commerce and finances, a qualified business law attorney can help you take the first steps toward those goals by laying the groundwork to become a successful franchise.
Study Your Business and Industry
To become a profitable franchise, your business must meet a consumer need in a refreshing and creative fashion. Launching a Burger King clone, for example, may have limited success in certain areas, but unless you bring a novel approach or a twist on the existing model, you risk fading into obscurity. Find a niche that is currently unaddressed by national brands, and do your homework.
Market research is a vital part of any business plan, but the anticipated scope of a franchise makes due diligence all the more important. You need to look beyond your own neighborhood; if you just wanted a second location on the other side of town, you could probably run it yourself and not worry about franchising. Becoming a franchise is more ambitious than that, and your market research must reflect your objectives.
Develop a Repeatable Business Model
Does your company’s success depend on your presence and business acumen? When—or if—you take a vacation, do you come back to a backlog of unresolved problems? Remember that a franchise, by its nature, removes you from the day-to-day activities of franchised locations. Therefore, your approach to production, sales, service, or whatever it is your business offers must be able to be systematized and repeated at every new location. At the same time, a degree of flexibility is also important, as every location will have unique concerns and considerations, based upon the region and demographics.
Choose Franchisees Carefully
In order to attract potential franchisees, you will need to build your franchise in a manner that allows each location owner to make a significant profit. This means, however, that you will need to select your partners with care. They will be representing your brand and your professional image. Allowing them to be profitable will help keep them driven to work hard to increase efficiency and productivity. The best ones will have constructive ideas and offer methods for improvement that you may want to consider implementing across the company.
There are, of course, many other concerns that you will need to address as a potential franchisor, including the legal complexities of a solid franchise agreement. If you are considering converting your business into a franchise, you need the guidance of an experienced Naperville business law attorney. At the Gierach Law Firm, we are committed to helping your company thrive and will work hard to give you every opportunity to succeed. Call us today at 630-756-1160 to schedule a consultation.