franchisor question

[fromantv]

hey guys....i am planning on starting a business next summer...after i start it up and etc...how long or what are the steps in becoming a franchisor...does it matter how much revenue i get? do i take the chance in opening into other markets? my idea is niche oriented and it has not been tapped yet...so i would be the first in that market...but do i wait X amount of years to become a franchisor? any info would be great

thanks

[Paint and Air Sportz]

You really should be even thinking about franchising yet, first open your business if its succesful open a couple more locations, then more and more, and then you may start thinking about franchising.

[buynick]

There is a lot of planning that goes into being a franchisor. Most franchisees will want a proven track record to start with, then a completely turnkey business with backend support. You really turn your one store into a corporate headquarters for franchisees, with a call center for problems, lots of advertising material. Then you have to hope they do well and that you get a cut. If they don't, you'll need a collection agency, not to mention a good lawyer to set the whole thing up...man I'm tired just typing about it. Sell your idea and get out now!

[fromantv]

haha...good responses thanks

[David Rocci]

You will definitely need proven performance in multiple locations. Even if it is only 4 or 5... but you also need to prove the idea is scalable. Then, you need to make it turnkey.

You could try learning about franchising and then work it backwards. By learning the best practices in franchising, you can learn what it takes be a great franchisor. Try a book like Street Smart Franchising (http://www.amazon.com/Street-Smart-F...dp/1599180219).

The CEO of Liberty Tax highly recommends this book. And he built JacksonHewitt from the ground up, sold it for $387M or some such insanity. And then started Liberty Tax which is now ranked in the top 10 or top 15 of Entrepreneurs best franchises and has grown year over year more than JH and HR Block combined.

My point is that he is an authority on building a franchise system so his recommendations are probably decent ones.

-dr

[FranchiseTools]

Once you are ready to start franchising your idea, you need to make absolutely certain that you have met all the local legal requirements there is a great book out there 'franchising bible'.
I have a number of web based tools to assist you once you ready to take the step.
search google franchisetoolz.blogspot

[hugh009]

Go to web and Google "International Franchise Association" where they have EXCELLENT FREE advice for a potential franchisor like your self. Also Entrepreneur magazine always has a good section on Franchising.

Hugh