You need to be realistic about how quickly you can grow your franchise. Although new franchisees usually provide the capital for their operations, you will be involved helping them set up. For example, you will have to run initial training, or provide hands-on support when they first start trading.
This means that you may only be able to cope with one or two new franchisees at a time. You may also prefer new franchisees to be relatively nearby, making it easier to visit them. Many new franchising companies aim for a gradual roll out across the country in this way.
What to include in your franchise offering
Once you have decided what to offer franchises, you need to prepare a franchise prospectus or brochure and update your website. This tells potential franchisees what you are offering and what they can expect. It should include:
an explanation of your product or service
what franchise territories you are offering
what the franchise fees are
what financial returns the franchisee might expect
information about your experience, franchise package, training, timescales, next steps and application form
Bear in mind that you are generally competing with other businesses to attract potential franchisees. At the same time, think carefully about what kinds of people you want to apply. They should have the finances needed to invest in the business, and the right management skills and attitude.
How to advertise and promote your franchise
To attract franchisees, you may want to:
- advertise in the business opportunities section of a newspaper or on a franchise website such as whichfranchise.com
- utilise social media channels to highlight your offering and engage with potential franchisees. Read more on social media best practice for business.
- become a member of the British Franchise Association
- recruit potential franchisees at franchising exhibitions