A franchise is a business model that allows investors known as franchisees to use the existing business operations model and the right of use of the trade name. Franchisers can build a business into a multi-million dollar company if determined to grow the franchise from the ground up. This will allow a franchiser to learn all the ins and outs of the business, and find the recipe for success, according to Entrepreneur.com's Jeff Elgin.
Visit the International Franchise Association. This organization is a great resource for business owners looking to turn the company into a multi-location franchise. The IFA has vast amounts of information about franchising a business successfully and can lead a business owner in the right direction.
Set you your operations model for franchisees. The operations model is how the franchisee will conduct business in the franchise establishment. It allows for some latitude, but mostly, the operations model details policies and procedures. For instance, if your franchise makes deli-fresh sandwiches, the operations model or guide will tell your employees how much turkey to put on a sandwich, how to slice the bread, the proper way to fold the sandwich and package it. It also gives the franchisee hours of operation, suggested retail pricing and other information necessary to standardize operating the business so that customers will have the same experience and find the same products in each location, according to Entrepreneur.com.
Get a Uniform Franchise Offering Circular. The federal government requires franchisers to give potential franchisees a UFOC. The UFOC details financial information about the franchise itself as well as giving specific information on how each franchise location is to operate, and all costs and fees associated with opening and operating a franchise location (See Resources).