Franchising can be a fast, low cost and effective method of expansion if it is undertaken in a professional, structured manner. However, if you quickly "leap" into franchising on a trial and error basis, your do-it-yourself approach will likely end in disaster.

Developing a profitable franchise program requires knowledge, skill, talent, and experience.

Some of your concerns should be:
  • What package of services should you offer your franchisees?
  • To what extent do these services need to be developed?
  • What operational structure is most appropriate for your franchise expansion?
  • What organizational requirements are needed to implement this structure?
  • What controls, methods, reporting systems, supervision and assistance are needed?
  • Who is the type of franchisee best suited for your method of growth?
  • How do you best recruit, qualify, select, train, and motivate your franchisees?
  • In what market areas do you intend to franchise and why? What amount of market penetration is needed?
  • What should you charge for a franchise fee, royalty and advertising assessment? What is the justification for these charges?
  • What are the various state and federal requirements regarding franchise agreements, disclosure documents, registrations and filings? Are there concerns about anti-trust laws, SEC requirements, and various other federal and state laws?
  • How do you develop your operations manual and design your training programs?
  • What marketing and advertising program is needed for you and your franchisees?

By addressing these and other concerns and planning carefully, you can eliminate many costly mistakes, blind alleys, legal pitfalls, and incorrect assumptions.

If you do not have the experience, knowledge, and skills necessary to develop your own franchise program, what are your options?