Essential Steps to Franchising a Business in America

You start a business; draw up a marketing and business plan; after a while, start yielding its benefits; in a few years, you have acquired a brand identity and consumer loyalty, and you are raking in a substantial amount annually. It’s at this juncture that you start thinking:

“What’s next? How do I expand my business?”

Well, how about starting a new franchise in USA? It is not as far-fetched an idea as you might think it to be. Every year, several brands open up for franchising, and as of yet, it has done wonders for the economic upliftment of local communities by creating jobs, not to mention contributing substantially to the nation’s GDP. Surely with the right team and effort, you too can be claimed as the “best franchises to own” by an aspiring franchisee.

However, you need to take the first step towards that goal, initiate franchising a business. Here’s how you do it in the US.

1. Is Franchise the Right Model for Your Business?
   Although just a formality, you need to determine and be sure about your decision of opening up for franchising. There should be clarity regarding your business objectives, long-term goals, and likewise. Remember that after opening a franchise, you would have to recruit, train, and provide support to the franchisees.
2. Draft the Franchise Disclosure Document
   The second step is drafting your Franchise Disclosure Document or FDD. It should have all the essential clauses and details regarding your franchise model. Along with that, the FDD should be compliant with state-specific laws and deferral laws, aligning with your business and the industry your franchise will be affiliated with.
3. Develop an Operations Manual
   One of the many benefits of franchising is that it comes with an operation manual. It makes even business amateurs gain confidence to run the franchise. So, as the franchisor, you would have to develop an operations manual to provide to your franchisee. The manual should document the system requirement, along with other essential information for operating the franchise.
4. Trademark Registration
   Before you initiate the franchise venture, it is important to register all your trademarks under the United States Patent and Trademark Office. That’s how you protect the identity of your brand and make it exclusive.
5. Open Up your Business for Franchising
   To begin a franchise business, you would have to establish a corporation or LLC (Limited Liability Company). That’s how you begin franchising your brand, selling the business model, and building a robust infrastructure to support it.
6. FDD Registration and Filing
   You cannot sell the franchises before registering and filling the FDD with consecutive states while staying compliant with their respective laws.
7. Strategizing the Sales, Marketing, & Budget
   After all legal compliances are dealt with, next, you need to solidify your marketing and sales blueprint, the promotional aspects, not to mention the budgetary side of things. Do you want to sell low-cost franchises? Do you want to keep the initial investment high and support the franchisees with financial aid? These are the decision you go to make at this stage. Some key focus areas include:
   • franchise sales strategy
   • promotional and marketing plans
   • target franchises and markets
   • initial investment and royalty fees.

The process of starting a franchise takes between 90 to 120 days in the US, including the legal formalities.

Want to know more about the best franchise to start? Get your share of business trivia at https://franchisingusamagazine.com/.

Source: https://topfranchisesopportunitiesintheusa.wordpress.com/2021/05/13/reap-the-advantages-of-franchising-in-the-usa/