Talk on the Street
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Talk on the Street
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Ever thought of turning your business into a franchise? Franchise expert Derek Cafferata shares 3 inside tips to turning your dream into success.
Franchising is when you take a business brand and model, with established systems and strategies, and replicate it across different locations. The franchise business model is attractive to entrepreneurs and business owners for a vast range of reasons, including less risk, a greater level of support and a tried and tested business with an established market presence and working systems.
Going from being a business owner to a franchisor is a very big step. It looks like an attractive option that offers huge financial potential, which it does. However, it is a process that should not be rushed and needs to be carefully thought through and researched.
Derek Cafferata, CEO and President of franchise experts All State Franchisers, located in Fort Worth, TX, has more than 30 years of experience in the franchising industry. Derek has helped a huge number of entrepreneurs go from business owner to franchisor. Here Derek shares three tips to consider before making the transition into franchising.
Are You Ready?
“So often it’s all about the timing,” says Derek. “Are you ready? Is your business ready? Is your industry and target market ready? Is the economic climate right?”
It’s not just about having a good track record with a business. To successfully franchise a business, it needs to appeal to customers as well as franchisees. For customers, the business needs to be something useful, popular, good value, high quality or needed. But it also has to be something that can be tweaked to different consumer groups across different locations.
For franchisees, the business needs to be easily replicated, with tried and tested systems in place to make replicating the business as simple as possible.
“If your business is ready, the next question to ask yourself is, ‘Are you ready?’” says Derek.
Your role will change when you become a franchisor. No longer will you be focused on your business. You will instead be focused on selling your concept, not your product or service. You will need to be prepared to sell your concept and take on a supporting role to all franchisees. Your focus will move from developing and growing your business to developing and growing a network and the way you brand, market and systematize your business will change.
The Right Advice
According to Derek, legal, financial, business and franchising advice is vital for successfully franchising a business.
“Seek out those who have experience in this process,” says Derek. “Utilize the knowledge of specialist franchising lawyers, accountants and business advisors. Talk to other entrepreneurs who have franchised their businesses.”
The right advice is key. Otherwise, the process can become overwhelming and confusing. Understanding your Franchise Disclosure Document is vital, clearly setting out policies, procedures, requirements and systems will give your franchisees the best opportunity for success. Talk to those who have been through the process of franchising themselves. Ask how they found the process, whether they would do it again and what they wish they knew at the time.
Protect Your Brand
“Understand that, when franchising your business, your focus becomes building and protecting your brand,” says Derek. “For franchisors, the brand is what becomes their most valuable asset.”
Replicating what you do and how you do it is a very difficult thing to achieve. The success of your business was built on your ability, knowledge, beliefs and work ethic. You have set the tone of your brand. Now you need to try and instil this into different people, all in order to build and protect your brand.
As a franchisor, you will walk the fine line of keeping control of branding, culture and direction of the business, while at the same time allowing franchisees the flexibility to be their own boss and make a success of their franchise unit. This is something Derek has found that potential franchisors can struggle with if they aren’t prepared for it.
Franchising with All State Franchise Finders
If you are considering the concept of taking your business to the next level with franchising, be sure to contact the franchise experts at All State Franchise Finders. Contact Derek and his team on 1-800-544-2161 or visit demo.allstateff.com today.