Tips to Succeed with Your New Franchise
Posted on November 12, 2010 by My Franchise Law
When starting out as a new franchisor, it’s important to make sure your business will continue to grow and thrive at a steady pace. From supporting new franchisees, to setting out a long term business strategy, laying the groundwork now will make things run much more smoothly in the future as you pursue your expansion opportunities.
Do your homework and invest in new franchisees: When deciding which franchisees you want to work with, it’s important to find individuals who will be strong partners, and help maintain the strength and reputation of your brand. Never sign a contract with someone simply because they are willing to invest – the more selective you are with your initial lineup, the more likely you will be to maintain positive, thriving relationships as time progresses. In addition, once you have contracted your new franchisees, make the time to thoroughly brief them on expected business operations, and continue to offer support and guidance as they get off the ground. The more time you invest early on, the more likely it is that your franchisee will be successful in promoting the business.
Hire a franchise lawyer to protect both your interests: One of the best things you can do early on is to hire an experienced franchise lawyer to ensure that all of your legal documents are in order, such as your Franchise Disclosure Document and franchise agreement, and contain clear terms and conditions. By ensuring that both parties are aware of their obligations, responsibilities and rights, you will be able to enter into your new franchise contract confidently, and decrease the chance of litigation down the road due to vague terms or wording.
Perfect your system: When you are starting out, it can be tempting to enter into franchising too soon, before you have your own seasoned business model in place. It’s important to perfect your system before passing it on to your new franchisees. By working out the kinks first, both you and your franchisee will benefit from your past mistakes and move forward with a successful business plan.