5 Things You Need to Do As a New Franchise Owner

If you’re a business owner who’s been in business for some time now, you might have considered taking your licensable business model and turning it into a franchise. A unique product or service can make it easy to drum up business in multiple locations, especially if you’re already successful.

However, there are a few things you should take into consideration if you want to make a drastic shift in your business model.

Standardize Your Accounting

Having multiple locations spread across a wide area can lead to confusion if you don’t have a standard accounting system in place. A standardized system will let you create reports quickly and seamlessly whenever necessary. Conversely, a complex standard or standards that vary from one location to the next could cause unnecessary frustration and hassles for you and your staff.

Digitally Centralize

Any resources that are shared throughout your company that can be digitized, should be. A robust digital resource center can provide your staff with easy access to files, vendor information, spreadsheets, and other information that will help ensure your business is running smoothly. 

Be Willing to Manage

As an owner of a franchise, you’ll need to be willing to manage the day-to-day operations of your company. Although you’ll have managers at each of your locations to delegate many responsibilities to, as the owner, you’ll still want to have a hand in how things run. Once your business is running successfully, you can pull back and begin delegating more.

Keep it Legal

The FTC lays out very clear guidelines in the Franchise Rule. You should consider hiring an attorney to help you wade through the rules and regulations that are required of new owners. Although bringing on legal counsel is an added cost, it will be worthwhile when you’re firmly in compliance with all FTC guidelines.  

Be Certain in Your Choice

If turning your business into a franchise is simply an idea you’ve been toying with for some time, it might be best to sit down and really consider if that’s the business model you really want. You might find that running multiple locations isn’t in your business’s best interest. If that’s the case, you can set your plans aside for now and revisit them in the future. 

The most important thing to remember when you consider expanding your business is whether or not branching out is truly a good business opportunity. Consider the things listed here when making your choice, and always be confident in your final decision.