The bottom line of any business is the generation of revenue which is only possible when the sale happens and until and unless the multiple sale points will not be available the revenue can’t be maximized and the business will be always undervalued. One of the best solution to maximize the revenue generation is to take your business to franchise or retail way. Franchising is a method in which you can create multiple sale points across the region or globe in a lesser time and with lesser risk. You can associate multiple hands (franchisees) in the respective regions who will assist you to liquidate your product and services and provide you horizon to out reach your product or services to the remotest place. This will result in more rapid growth and stability to your organization and the network.
Now to bring your business on the franchise path you need some necessary arsenals which will be the amalgamation of your business ideas, industry norms and statutory compliances which will collectively term as Franchise Model. Franchise Model of your business will help you to explain your product and services along with the financial projections, Sops & Manuals and Legal Agreements to the extended prospective arms (Franchisees) and to boost them to join hands with you.
Franchise agreement is nothing but the legal document which is signed by both of the parties once the deal of doing business together is completed. It explains what exactly franchisor expect from the franchisee, terms of the payment like amount, time of the payment, instalments , and the arrangements made for financing. It includes the procedures of marketing and advertising the business. It also includes some issues regarding the franchise location terms. Before signing the franchise agreement all these terms must be considered by both the parties.
Franchise operation manual is the answer for all the questions initiated by “how-to”. It explains what both the parties need to know regarding operating the business for rapid growth. Franchise operation manual gives the guidelines outlined by the franchisor and these guidelines must be followed by the franchisee. Franchisee should keep confidential all the contents in the manual as it includes guidelines for the franchisee regarding operating the business.
One more legal document that binds franchisee and franchisor is franchise disclosure document. At least 10 calendar days before signing the franchise agreement franchise disclosure document should be submitted. It gives the details for the franchise operations. Using this document franchisee can easily analyse the franchisor. It may include the information of the industry like size, location, financing issues, contracts, trademarks, patents etc. This helps to come up to a decision about buying a franchise. Using this document franchisee can decide whether to move forward or not.
Thus franchising has tremendous advantages for your business growth. But before franchising your business fix your concepts and the operations using which you want to franchise your business. Accordingly make your business plan and the franchise plan. So in order to make fast growth of your business start franchising your business. All the documents mentioned above are legal and can help you to be sure in franchising the business. Definitely it will help your business to boost in the market rather than using the same traditional methods of marketing. Franchising is the best method used by most of the business owners in the market. Considering the franchise attorney charges and the time you can easily choose the best franchise for your business.