Virtually any type of business has the potential to become a franchise—from restaurants and retail to fitness and pet care, and beyond. If you’ve invested countless hours and energy into growing your business and you’re ready to take the next step, perhaps launching a franchise is right for you.
At Pinnacle Franchise Development, we work with business owners from all sorts of industries who are interested in creating a franchise brand. Whether you’ve already done extensive research on the franchising process or you’re just starting to think about taking that next step, we can provide the support you need.
In order to begin selling your franchise with Pinnacle, you will need to meet four criteria, as follows.
#1 Create a Complete Franchise Disclosure Document (FDD)
Before you can sell your franchise, you’ll need a Franchise Disclosure Document. There are strict compliance regulations regarding the FDD, so it’s important that it’s done correctly.
The Federal Trade Commission (FTC) requires 23 specific items to be in the FDD. Here’s a look at just a few of them:
- Franchisor’s background
- Business background
- Litigation history
- Initial and other fees
- Renewal, termination, transfer, and dispute resolution
- Financial statements
If you don’t yet have an FDD, our team can refer you to a trusted franchise lawyer.
#2 Develop a Comprehensive Operations Manual
Along with your FDD, you’ll need a detailed operations manual. Your operations manual will contain all of the information about your franchise’s policies, procedures, and standards that franchisees are required to adhere to.
The specific contents of the operations manual can vary, depending on the type of business. In general, it may include:
- Pre-opening procedures
- Equipment and inventory requirements
- Daily operating procedures
- Management procedures
- Marketing and advertising guidelines
- Customer service standards and policies
- Administrative and reporting obligations and procedures
- Payroll, accounting, and technology systems
#3 Prepare a Marketing Budget
The importance of marketing shouldn’t be overlooked. You’ll need a marketing budget that is generous enough to effectively raise brand awareness and attract well-qualified candidates to become your franchisees.
Marketing is a broad, complex field that encompasses many different avenues. At the very least, you’ll need to budget for a franchise website, which can benefit from the attention of a professional web designer, graphic designer, and copywriter.
You can use your website for inbound marketing copy designed to attract potential franchisees who are searching for franchise opportunities. However, it’s advisable to mix inbound marketing with paid advertising campaigns for best results.
If you’re unsure of how much your marketing budget should be, we’ll be happy to provide guidance. Marketing is a full-time job, and with so many other responsibilities to take care of we recommend putting your trust in experienced professionals who understand the nuances of franchising and can prevent you from wasting time and money on tactics that get you nowhere.
#4 Prepare Your Infrastructure for Expansion
If your business requires a physical location from which to serve customers (e.g. a restaurant or retail store), you will need to ensure the right infrastructure is in place.
Location is critically important for the success of any brick and mortar franchise. The site selection process should involve a careful consideration of whether the business is likely to attract enough customers in any given location.
The team at Pinnacle will be happy to assist you with infrastructure preparation. We can provide resources that will support you as you consider matters such as:
- Site selection
- Lease negotiation
- Construction permitting and management
…and other aspects of franchise real estate.
Start Selling Your Franchise with Pinnacle
With 40 years of combined experience, the team at Pinnacle Franchise Development is uniquely positioned to help business owners turn their companies into thriving franchises. We offer a complete range of franchise development services designed to elevate your brand, build a solid franchise plan, and attract the right franchisees.
Contact a franchise development company with multiple awards and recognitions, and years of experience in the dynamic franchise industry.