The most important thing you can do before committing to franchising your business is old fashioned market research. Franchising is expensive and time consuming to set up so in order to avoid financial loss and disappointment it's vital you research the viability of your franchise model thoroughly.
It sounds impressive to say "I own a franchise" but try not to get caught up in your hopes and dreams without the benefit of cold analysis and being utterly realistic. It's all to easy to believe what you want instead of what's real.
Researching should take about 6 months to one year to complete properly and only when the green light is given there can you start to consider seriously the possibility of owning a franchise.
The first franchisee is always the hardest to get. This is because your franchise model will have no track record and it'll be harder for people to trust. In effect they'll be taking a bigger risk by buying your franchise instead of another which does have a proven track record.
For this reason you could find that you'll need to offer more attractive terms to potential franchisees such a lower initial payment to buy the franchise license or a lower rate of royalty payments. This is only fair since this first franchisee is helping you to develop and prove your franchise model and taking a greater risk themselves because of that.
If this initial franchisee does well you'll have some proven track history and can raise your fees back up to their correct market value.
With your first franchisee comes a critical point in the ultimate fate of your franchise business. They absolutely must succeed and you should put in all the effort and support required to see that they do. The success of your franchise depends on their success as a franchisee. It's just that simple.
In part 3 we'll take a close look at the important process of selecting the right people for franchisees. If anything is true it's this, franchising is a people business.
Author Resource:
The writer is a successful businessman who runs his own music franchise. You can also check out his popular product reviews on inground pool prices and find some fantastic deals for inground pool kits by visiting his site.
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