What can be franchised. Selling a franchise of your business: what, how, when? Legal side of the issue

What action algorithms will help you find and retain franchisees, as well as ensure maximum network performance?

Anna Danilova,

General Director, "Masterboard"

You will learn:

How to sell a franchise and develop a franchise network.
How to avoid mistakes when selling ready business.

How to sell a franchise? We became interested in this issue back in 2009. Our production technology does not require significant costs, allowing you to create a finished product right on the spot. Moreover, it makes it possible to take a non-standard approach to the design of borders and paths, for example, apply a special pattern or embed backlighting. For the Russian market, at the initial stage of our development, this became an innovation.

After analyzing the experience of using the technology in the USA and Europe, we came to the conclusion that the demand for our products in the regions should be high. Then it was decided to develop the regions according to the system of organizing a franchise network. For us, this is a winning way of development: it is difficult to control a huge number of our own branches, both from an economic and organizational point of view.

In addition, according to our observations, the quality of products and services is noticeably higher when an entrepreneur works for himself and risks personal money and reputation, rather than finances and the name of the head office.

For us, the benefit is that franchisees regularly pay royalties (service fees) and increase brand awareness, thereby increasing the demand for products. And we provide consulting support, expand the regional network, improve technologies and pass this experience on to partners.

The number of partners is growing every year. As a rule, we sell no more than two or three franchises in one region, the number of franchisees depends on the territory, population density and demand in a particular region. Today the company's franchisees are represented in 25 regions of Russia and Kazakhstan. Let's look at a step-by-step algorithm for the development of a franchise network.

Step 1. Identification of a potential buyer of franchises and a ready-made business

About 70% of our franchisees are newbies in business who are interested in technology and want to start working for themselves. A franchise is a greenhouse business, as an experienced franchisor will always help a budding entrepreneur. This is the main lever of influence on the future partner. We give franchisees detailed instructions to launch a business with estimated costs at each stage, which allows you to bring a new entrepreneur to payback as quickly as possible.

There is also a second category of potential customers, which includes the remaining 30% of our partners. These are entrepreneurs who already have their own business and are ready to master another direction. They are already familiar with business processes and understand very well the value of the found market niche, as well as the described production technology, business building and support from experienced colleagues. Communication with them is built precisely in these areas.

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Step 2. Promotion and development of the franchise network

As with any business, in order to sell a franchise, it is important to use as many promotion tools as possible. There are no casual partners and impulse purchases in sales of a ready-made business. Therefore, you should always focus on those categories of potential customers who may really be interested in your offer.

If we are talking about finding established entrepreneurs in a small business, then promotion should be carried out in their environment. We find such businessmen at major franchise or construction exhibitions, where you can visually present the product and personally communicate with potential partners.

The stand usually contains a stand with product samples, a border machine, a flower bed made according to our technology, and the installation technology itself is demonstrated by videos. If the format of the exhibition allows, we conduct master classes and demonstrate the process of laying the curb. All this allows us to collect many contacts - both potential customers of decorative borders and potential partners. Communication at such events is the easiest and fastest way to convey the idea of a product and its manufacturing technology to a potential customer and replenish the client base.

The Internet is an effective promotion tool. About 75% of buyers come to us from the Web. To work with experienced businessmen, we post information on large portals for the sale of franchises and ready-made businesses. When working with startups, we use other communication channels - groups on social networks and SMM. For dialogue with young entrepreneurs, this is the best platform... There are two directions that function effectively here. The first is maintaining your own groups on the social networks VKontakte, Facebook, Instagram, Google+, YouTube, where news from our website is duplicated, photographs, video and audio materials are published. The second direction is placement interesting information in already established groups of young entrepreneurs and landscape designers.

Much attention is paid to SEO-website promotion. The site is the face of the company, and its good position in the search engines is the key to success. A special role here is assigned to the uniqueness of the content. Our main goal is to help site visitors quickly find information that would be easy and interesting for them to read. The more often this information is updated, the faster search robots index it.

In addition, we place advertisements with cross-links on major franchise portals: this helps us develop the franchise network even more and raises the site in search queries. We choose low- and medium-frequency queries: it is easier for them to advance in the search results; promotion on high-frequency queries does not always bring the expected results. It is very convenient to control the return on advertising through statistics provided by LiveInternet and Yandex.Metrica services. They allow you to quickly respond to changes in traffic and check the effectiveness of the Internet campaign as a whole.

When it comes to planning an advertising budget, it all depends on the effectiveness of the channels used. If you correctly calculate your target audience, correctly allocate your budget, constantly monitor the advertising market and use new tools, you will receive a powerful and stable stream of calls and can quickly sell your franchise.

Development of an agent network: search for agents and partners

Step 3. Create a commercial proposal to sell the franchise

Find out what each category of clients expects from the partnership, what they need, what attracts them to franchising. Most new partners like the system of work itself, when everything has already been invented and it is enough to follow clear instructions to get results. That is why the work of a franchise network should be based on the principles of maximum information transparency.

Our company regularly holds open doors (discovery days), during which potential franchisees can briefly familiarize themselves with the technology, equipment and methods of work. After acquiring a franchise, all the issues raised are covered in more detail in the training course. In addition, we organize annual conferences for partners: for two days we share our experience with each other, talk about new technologies, and summarize the results of our work. Be sure to talk about negative experiences in order to prevent franchisees from making mistakes.

All improvements, new developments and ideas are systematically received by partners in the form of mailings and in the course of personal conversations. This is followed by control, assistance in working with customers and other consultations.

Pay special attention to the attractiveness of selling your franchises and turnkey businesses. Fast payback is always interesting. The average payback period for our franchise, subject to active work in the region, is from three to 18 months. However, this is not the only characteristic that attracts franchisees. Many entrepreneurs agree to purchase a ready-made business with a long payback period if they like it. A franchise can attract with the beauty of the product, its novelty or originality.

Step 4. Preparing for the sale of franchises and a ready-made business

The flow of customers has been created, the next step is to turn them into real customers. At this stage key work leads the sales department, whose task is not to miss out on potential partners. One of our founders has developed his own training system for sales managers. The program includes several blocks, such as getting to know the company's product, cold calling technique, sales in our company, checklists on sales rates and cold calls, objection book.

In addition, salespeople themselves must be responsible for the presence of customers, and not rely only on the promotion of the company. Contacts of potential franchisees, regardless of category, can always be found on the Internet. Therefore, in the absence of incoming calls (which is extremely unlikely if you follow all the promotion instructions), sellers should devote part of their work time to finding new customers and communicating with them.

Step 5. How to sell a franchise and keep in touch with a client

An important factor in franchise sales is keeping in touch with a potential client. If someone approached you once, but did not make a decision to buy a franchise, this does not mean that they will not become your partner. In this business, everything is more difficult than in regular sales. You can buy or not buy something just according to your mood, and the decision to start own business for many it is comparable to the decision to marry. Future franchisees need to weigh the pros and cons, someone - to consult with relatives, someone - to analyze the market, study demand.

In our practice, there were two cases when a year and a half passed between the first appeal and the acquisition of a franchise. And all this time we kept in touch with future partners and provided them with information support.

Step 6. Development of the franchise network: customer support and control

To sell a franchise, it is necessary to conduct pre-sale support of a potential partner. The latter often does not have free funds, and the price of the franchise is very high for him. In such cases, we advise on the possibilities of lending, obtaining subsidies and grants.

Our company participates in the "Business Start" project of Sberbank of Russia for lending to franchises. By the way, this is another good promotion channel: Sberbank receives a lot of requests to buy a business. This tool sales should be included in the arsenal. However, it should be borne in mind that certification and approval of the sale of franchises and ready-made businesses is not easy. The main difficulty lies in collecting all required documents and the lengthy process of approving your project at Sberbank itself. However, participation in the program will once again emphasize the reliability of your franchise model and create a positive image in the eyes of a potential client.

In addition, we regularly develop promotions and special offers, hold raffles and provide customer service. For new franchisees, there is a "Quick Start" program: at the initial stage, our consultants optimize the partner's advertising costs, help choose solutions for promoting and launching an advertising campaign. The program includes no less important issues of building an organization: hiring personnel, consulting training to work with customers, obtaining subsidies and benefits. As part of the "Quick Start", we also provide franchisees with the opportunity to create a website. This is a very serious support for inexperienced entrepreneurs who are unfamiliar with web technologies and Internet marketing mechanisms.

Unlike working with your own networks, the control system of a franchise network is very simple: it includes the provision of quarterly reports to the franchisee, which indicate the amount of work performed. This data is centrally processed, and based on the analysis, individual support strategies for a particular partner are drawn up. Someone needs help with promotion and sales, someone - with production and other issues.

The entire range of the listed services is included in the licensed part of the agreement. Thus, the partner, paying for the license part of the agreement and further royalties, can be sure of our assistance. Of course, all these support measures do not generate direct income for the parent company. However, the commitments we undertake attract many new partners.

Instagram promotion: how to make it effective

Information about the author and company

Anna Danilova graduated from the Moscow State Academy of Business Administration in 1998 (specialty - Small and Medium Business Management). Since 2009, he has been managing the Masterbordur company.

"Masterboard" is a franchise group founded in 2008. Implements ready-made packages manufacturing business... The company's franchises are represented in 25 regions of Russia and Kazakhstan. Official site - www.masterbordur.com

There are thousands of franchise sales today Russian companies... The market is overflowing with offers to buy business ideas that promise to transform the inexperienced merchant into a successful entrepreneur. Can you stand out against this background? How to sell your business franchise at a higher price and create a network that can generate a stable income?

Selling a franchise is not easy. Bright, attractive packaging and a couple of ads on the Web are not enough here. Even if you are a leader in your market segment. A potential buyer is not interested in the right to use your brand. He, in fact, does not care how ingenious the scheme you created. The future franchisee needs guarantees of return on investment.

More often than not, people who are ignorant of entrepreneurial activity... They make up the majority of the target audience. However, you should be more careful with newcomers. Their fuse can quickly dry up, and they will only blame you for all their failures. But the target audience (target audience) will be discussed further. Where does franchise development begin?

We define tasks

Business models are created for different purposes, and these goals are achieved in different ways. For one franchisor, brand promotion comes first. For the other, making a profit in the form lump-sum payment and royalties. The development of the franchise begins with the definition of tasks.

We analyze the activities of competitors

The main thing is to objectively assess the readiness of the enterprise for franchising. If you are the owner of a little-known fast food restaurant, it will be difficult for you to find a buyer. Subway and several other catering giants settled in this niche for a long time. With ambitious plans to promote a furniture store franchise, you will have to work hard to surpass the ubiquitous IKEA hypermarket. However, anything is possible with an ingenious USP (Unique Selling Proposition).

Determine target audience

This stage can be compared to laying the foundation of a future building. It is not easy to sell a franchise without understanding the target audience. The main target audience is people without entrepreneurial experience, as a rule, former employees who dream of material independence. If, of course, we are talking about inexpensive franchise... Experienced entrepreneurs prefer to buy the rights to use the brand of a well-known company, which can be worth several million.

We create a brand book

Selling a franchise is the transfer of intellectual property for a fee. Its development includes the creation of an adapted brand book, which contains unambiguous rules for the use of marketing materials.

The manual should be understandable, visual, include comprehensive information about the technical and general characteristics graphic elements, colors. The brand book provides information about the company's mission, describes the options for using the logo, and also lists the unacceptable methods of using the elements corporate identity.

We register a trademark

Today you are planning to create a franchise network. Tomorrow you will develop a trademark, come up with a USP, launch advertising campaign... Sell your first franchise the day after tomorrow. No, alas, such a scheme is not feasible. It will take about a year to register a trademark alone.

We form a financial model

A potential franchisee is primarily interested in a business plan, that is, a document that reflects a detailed cost estimate and projected profit. An important point- payback period. It is installed based on the real experience of the franchisor. The form and size of the financial model depends on the characteristics and complexity of the business.

Create a package offer

These are materials that are formed based on the target audience. It is necessary to cover the maximum number of segments of potential franchisees, to make the most personalized and profitable offer (offer). A package for a franchisee can be both opening a turnkey business on your own, and providing training materials, training future employees, assistance in the selection of premises, etc. Accordingly, the lump-sum price will be formed from the completeness of the offer package.

We draw up documents

In our country, there are no specific laws on the creation of a franchise yet. There is a list of requirements, but it is rather advisory in nature. It turns out that any would-be entrepreneur can call himself a franchisor. Maybe that's why sell the rights to use famous brands today is not easy. There is a growing mistrust of franchises among aspiring and experienced entrepreneurs. Still, there are several tools that can protect cooperation legally, which means that it can inspire customer confidence.

Only an individual entrepreneur can become a franchisor or entity... The same goes for his potential client. In addition to registering a trademark, few documents are required to sell a franchise. Namely:

Materials for employees.
Franchise standards.

The second point implies the mentioned brand book, as well as the requirements that you plan to place on future partners. This may be a restriction on the activities of the franchisor. For example, a ban on the sale of goods or the provision of services outside a certain region. The criteria for choosing a room and other points can also be indicated here.

How to register a franchise, you decide on an individual basis. With the help of an experienced lawyer, you draw up a contract in which all the conditions and requirements are clearly spelled out. Royalties in the form of a fixed amount or a percentage of the franchisee's proceeds, the size of the lump-sum payment, the duration of the agreement - all this you determine on the basis of the research carried out.

How to start a franchise? The answer to this question is useful for a successful merchant. If the company is just starting to gain traction, postpone selling the franchise. Hardly anyone needs a copy of a bad original.

We create a controlling system for approved standards

As a rule, these are mystery shoppers, the customers of services from whose reports it is possible to identify weaknesses in the functioning of the business.

We create a marketing kit (advertising)

There are no clear rules for creating and using such a marketing tool. But there is no doubt about its effectiveness. The marketing kit includes the history of the company, a list of employees, customers, a list of achievements, a story about participation in forums, exhibitions, conferences, etc. It, like other materials of the franchise package, is compiled on the basis of the target audience.

Create a unique selling proposition

And here the definition of the target audience plays a decisive role. Yes, business owners are interested in selling a franchise. But there are not many of them. Most franchisees are entrepreneurs with no experience yet. In cooperation with a successful partner, they are attracted by the opportunity to develop in greenhouse conditions. No risks, experiments, mistakes. By the way, this is a delusion. There are always risks.

So how do you make a USP? First of all, you need to understand the fears of potential buyers. And they are primarily afraid of unjustified investments. USP is based on the concept of a franchise. This offer should demonstrate to the buyer all the advantages of your product over competitors' offerings. USP options:

lump-sum contribution is less than that of competitors;
the ability to pay royalties from the third month after the conclusion of the contract;
comprehensive training of franchisee personnel.

Franchise advertising

So, the first task is to create a quality product. Not a bright and beautiful brand, but a money making system. The second task is to create value in the consumer's mind.

A common mistake franchisors make: presenting goods or services at the beginning of negotiations. Selling a business to someone who doubts its profitability is impossible. This means that advertising needs to focus on investments and the timing of their return. The buyer is interested in the money back guarantee. And only after that - the characteristics of the goods or the quality of the franchisor's services.

Selling a franchise online

Start promoting your product on the Web by working on the official website. It must be alive and well attended. Desirable, with reviews from real customers. The prospective buyer must see: the business is successful, the services you provide bring good income.

A marketing kit is a tool with a wide range of applications. It is also pertinent on thematic resources - special sites where a novice franchisor needs to register first. Don't underestimate and social networks... So, in Vkontakte, Facebook, Instagram, Twitter there are groups dedicated to franchising. Promote your product in thematic communities.

Promotion of a franchise requires investment. We'll have to connect a whole staff of employees: internet marketers, copywriters, designers. A good ad copy will attract hundreds of aspiring entrepreneurs. Bad - will ruin the reputation in the eyes of potential franchisees.

The above is the duration of registration of TK. How to sell a franchise without a trademark? A seller who has a successful business model and operates under a brand that consumers associate with his activities is unlimited in the conclusion of the contract.

In this case, the agreement includes a clause on the use of the organization's know-how and a unique logo. This is an understandable, legal, transparent method of interaction.

How to sell a franchise without opening a single store

Specialists of a narrow profile meet in the field of sales. Some are adept at retail operations. Others are wholesale. The third is specialized in franchising. The latter are able to develop interesting idea on the sale of goods without opening a single store.

Professionals in their field manage to build a franchise network according to one of the working models. At the same time, they do not develop their own business, and this fact is sometimes used as a USP. They promise to direct all efforts to support future partners. This attracts consumers.

Owners of large companies are thinking about how to sell a franchise abroad. Those who have managed to promote their brand in the regions of Russia. But there are still few domestic companies operating abroad. Moreover, most of them are limited to the countries of the post-Soviet space.

Research your competitors. This is the only way to convince a potential franchisee of the benefits of your business system. Include consultations, trainings, support in the package being sold. Convince the prospect that you are providing a proven scheme that will allow him to gain financial independence. After all, this is what attracts many in franchising.

Important! With an increase in the number of franchisee partners, the burden on the business will increase. Make sure that the staff of your employees allows you to fulfill their obligations with high quality.

The lump-sum contribution depends on the profit that the partner will receive in the future in three to five months. This amount is projected based on your firm's earnings. If the monthly profit is 300 thousand, the franchise must be sold for at least 900 thousand.

When telling your future partner about the prospects, do not exaggerate incomes, do not remain silent about possible difficulties. Please provide only truthful information. Your reputation depends on the success of the franchisee.

To stay afloat, you need to move forward. Everyone knows it successful businessmen... One of the ways to expand your own business is to create a franchise. Passing on the acquired experience to others, you remain the owner of the enterprise, develop new markets and receive remuneration. How to sell a franchise, what is needed for this and what costs await the future franchisor?

This is what it is about selling a franchise: you share your right to use your brand with the buyer, and in return you receive income in the form of a lump-sum fee and monthly deductions - royalties.

Compared to opening your own branches, a franchise has a number. Investments are required to create a network. Most likely, you will have to search, convince investors of the advisability of each of their actions and listen to their precious advice.

Well, a franchise seller is a person who gives advice himself and monitors their strict implementation, earning additional income. The funds received can be invested in training new franchisees. And they, in turn, will provide you with rapid expansion into new markets. In addition, you remain the rightful owner of the business without losing control over it.

Preparation for sale

Before you start franchising and selling franchises, assess how well your business is for this. Answer the following questions for yourself:

is your business operating efficiently;
whether it will be easy for you to describe the main processes;
whether you will be able to teach other people about your business within two or three months;
whether your company is recognizable (brand presence).

If you have positive answers, you can start preparing for the sale.

How to start selling a franchise? The whole process can be conditionally divided into three components:

preparation of legal;
development of the actual instructions and conditions for the franchisee;
promotion of a ready-made franchise.

It is also necessary to secure your rights to the brand: the name, technologies that distinguish your business from many others must be patented in Rospatent.

Legal side

The sale of franchises in Russia is regulated. It is in it that the presence and size of the initial payment is prescribed - a lump-sum payment, and monthly royalties.

The agreement establishes further mutual responsibility between partners.

The franchisor must accompany the franchisee at the initial stage, provide training and be available for consultation on any issue.

And the franchisee, in turn, must adhere to the instructions of the patron. In case of failure by the parties to fulfill their obligations, the possibility of terminating the contract should be provided.

The owner should think about how to sell the franchise of his business seriously and for a long time, so that the partners remain in your network, and not leave for their own - similar - business, having received necessary knowledge and experience.

Special conditions can also be negotiated, for example, is it possible to resell the franchise to a third party, whether the owner will supply goods and equipment, in which territory the agreement is valid.

Guidelines and standards

One of the costs for the person selling the franchise will be developing a manual for the franchisee. It should contain standards: a detailed description of the business, production technologies and customer service levels, as well as instructions describing how to achieve these standards.

The difficulty in compiling such a textbook is that an entrepreneur must analyze his own actions in retrospect and leave only those steps that led him to success.

Therefore, the owners of a ready-made business come to the aid of specialists in the "packaging" of franchises. They will create a clear algorithm, thanks to which it will be possible to copy a business by simply repeating certain actions.

Promotion

Finally, you need to get busy preparing to promote your product. Selling franchises and ready-made businesses is a separate activity that requires both time and money. Calculate what will be more profitable for you: expand your staff by forming a special department dealing with the development of presentations, or contact an advertising agency.

Client search

Now about where to sell the franchise. Having a ready-made offer in hand, an entrepreneur is ready to demonstrate it to potential buyers. Usually, interested persons are willing to study the special catalogs of franchises posted on the Internet. However, not all successful firms are registered in them; the opposite is also true - the presence of a franchise in the catalog is not a guarantee of the franchisor's liability. Therefore, just posting information on such a site will not be enough.

One of the indicators of the company's success is the presence of its own website. A well-designed website on the Internet will tell about your business not only to clients, but also to potential franchisees.

Before selling a franchise, responsible owners are willing to provide interested parties with the contact details of existing partners. Such communication is productive, first of all, for future franchisees. They will be able to find out in advance about the project, understand why this business is not suitable for them, or, on the contrary, will confirm their decision to conclude a deal with you.

You can ask for help from specialists - franchise brokers who know how to sell a franchise correctly, and will be able to help you both in the campaign and in negotiations with potential buyers.

Customer rating

How to sell a franchise and not damage your brand's reputation? It is in the interests of the owner to conclude contracts only with responsible and serious partners. Therefore, everyone who wants to purchase a franchise must provide you with information about themselves, for example, in the form of a completed questionnaire. And you will have to decide whether you can entrust him with the work under your brand.

Promoted firms solve this problem by setting a solid initial payment for the franchisee. However, for newcomers to the market, this selection method may not be suitable. On the contrary, at first it is more expedient to reduce the amount of the lump-sum payment, provide payment in installments or sell the franchise for a percentage of the expected profit. The partner will be able to start a business on favorable terms, and you can test your work in practice.

After signing the contract

When all issues are resolved, you can sign an agreement. But, of course, the process does not end there. After all, both the profitability of the new enterprise and the number of those wishing to repeat this experience will depend on the quality of your support.

As a rule, the patron helps to select and rent a suitable premises for business, equip it, and arrange the supply of goods. But most importantly, he provides training for the partner in all the intricacies of the business. Whether you will do this personally or will you have a special support department depends on the type of activity and the scale of the enterprise.

How to Choose a Profitable Franchise: Video

Selling franchises Is a great way to expand the sphere of influence of your own business, attract investments and get additional profit. In this regard, many successful entrepreneurs are concerned with the question of how to sell a franchise of their business. The article describes the process of creating and packaging a franchise, and also discusses the features of advertising and selling franchises over the Internet.

Who can franchise their business

Before you start creating and selling your own franchise, you should familiarize yourself with the features of this business, as well as existing species and types of franchises. You can find detailed information on all these issues.

An organization can sell a franchise for its business or individual registered as individual entrepreneur... The type of activity is not limited by law. In Russia, the most popular are the services and Catering, however, no one will prohibit putting up a franchise for sale manufacturing enterprise or a sales organization. Thus, in theory, absolutely any organization or individual entrepreneur can become a franchise seller.

In practice, things are a little more complicated. The main condition for the expediency of selling franchises is the interest of potential buyers. So that aspiring entrepreneurs think about purchasing your franchise, the business must fall under the following criteria:

The company has been operating in the market for more than one year and brings stable profits;
The brand is popular with consumers, well-known and easily recognizable;
The scheme of work is debugged and tested in practice. It can be described in the form of techniques and step-by-step instructions;
The company has proven suppliers from whom it purchases necessary equipment, goods and materials;
The work does not require highly qualified personnel. Employees must be trained in a short time;
The business can be easily adapted to different regions of our country;
The size of the initial investment, the payback period and the approximate value of the profit received can be calculated;
The franchisor is ready to provide support and advice to the buyer of the franchise at the initial stage of business organization.

The franchise seller must have a fully legal business. If special permits and licenses are required to carry out activities, they are mandatory must be with the franchisor.

Why selling franchises is profitable

For the buyer franchise - this is a great opportunity to start working for yourself with minimal costs under a recognizable brand, using the experience and many years of experience of a well-known company. When it comes to selling franchises, it is beneficial for the business owner because:

The franchisor expands its business, makes the brand more recognizable and improves its reputation;
From each new franchisee, the seller receives a lump-sum fee for the right to work under his trademark;
Every month, a percentage of the profit received by the franchisee is transferred to the franchisor's account.

Thus, a franchise allows the seller to generate additional profit and expand their sphere of influence without actually making any effort.

How to franchise your business

Before starting a franchise for your business, you need to register your brand, logo and trademark rights. This can be done in the patent office (Rospatent) online or by direct contact. To register a brand, you need to submit an application and pay a state fee, having previously checked the uniqueness of the logo in the unified register. It can take from 4 to 12 months to register the rights, so it is better to take care of this in advance.

If the rights are registered and the company meets the above criteria, the business owner proceeds to create and package the franchise. To do this, you can contact specialized agencies or use the step-by-step instructions below.

Market analysis

Before creating a franchise for your business, it is worth conducting a market analysis and determining the target audience, that is, those who will be interested in buying a franchise. Knowing which category of people to focus on, you can prepare a proposal taking into account their needs, doubts and financial capabilities.

The study of the target audience is carried out by analyzing competitors, using logical methods, social surveys. The more accurately the needs of buyers are determined, the higher the chance to sell the maximum number of franchises and ensure a sustainable profit in the future.

Preparation of a contract

A commercial concession agreement is concluded between the buyer and seller of the franchise. It is better to entrust the development of his project to professional lawyers or order it on the Rospatent website. You can, of course, use the contract form downloaded on the Internet, but in this case, you must carefully check all its points. Particular attention should be paid to the following points:

The size of the lump-sum fee and monthly payments to the franchisor;
Requirements for doing business, compliance with corporate standards and the ability to introduce innovations and your own ideas into the strategy;
Restrictions on location and volume of sales;
The procedure for resolving disputes and conditions for the extension and termination of the contract.

The contract must be tailored to a specific business and include all significant points in order to avoid misunderstandings in the future.

Franchise preparation

Franchise preparation- this is the most responsible and laborious stage. Before starting it, you need to conduct a full analysis of the financial and economic activities of the company, to identify its strengths and weak sides... Direct preparation of the franchise includes:

Registration in the form of instructions of all financial and economic processes of the company, from the purchase of goods and equipment, ending with the collective charter, customer search scheme and advertising companies.
Drawing up a guide for using the corporate identity of the company.
Development of a system for hiring, training and adaptation of employees.
Formation of a training and support system for franchisees.
Preparation of accounting documents and draft business plans.

Ideally, instructions should contain descriptive graphs, diagrams, and tables. It is even better if the material is designed in the form of presentations and videos.

Franchise packaging

The packaging of the franchise includes the development of a short concept and a franchise book.

The short concept is a kind of business presentation. This is what we see when we go through the advertising banner of the company selling the franchise.

This is a commercial proposal that fits on 1-2 sheets, which reveals the main features and benefits of the business. Its purpose is to interest a potential buyer, induce him to request Additional information about company. The success of sales depends on how well the concept is drawn up.

If the goal is achieved, and the buyer wants to get more in-depth information about the business, a franchbook is sent to him. It is a presentation that answers all possible questions of a potential franchisee.

The purpose of the franchise is to convince the buyer of the profitability of the business, to show its advantages over competitors and to allay possible concerns and fears. The franchise book must be attractive, convincing, and contain complete and accurate information.

Selling a franchise

After the franchise is created and packaged, you can proceed to the most important stage - selling the franchise. To do this, you need to organize a high-quality advertising campaign and not disappoint the buyer at the stage of the transaction.

Franchise advertising

Selling a franchise starts with building your own website. It must be fully adapted to the sale of the franchise. On the site, a potential buyer can find out all the information he is interested in about the business. The site is the “face of the company”, and therefore it is necessary to carefully consider its design and content.

You can search for partners willing to buy a franchise in one of the following ways:

Participation in franchise exhibitions and events dedicated to the development of entrepreneurship. At such meetings, you can present your franchise and communicate directly with potential buyers. The advantage of participating in events of this kind is the ability to interact with the maximum target audience... After all, if a person comes to such an exhibition, he is initially interested in buying a franchise;
Advertising in the media and the Internet. This is a fairly costly way to attract franchisees, but very effective. Advertising can be placed on social networks in thematic groups and communities, as well as through Google and Yandex advertising networks by means of contextual delivery to interested users;

Advertising at points of sale and services. Information that the company is looking for business partners can be posted directly in the offices and retail outlets... People who turn to the firm as clients can clearly see the success of the business and want to try themselves as a franchisee.

For a faster sale, it is better to use all possible franchise promotion channels at the same time.

Making a deal

It is very important not to miss a potential partner who is interested in buying a franchise until the transaction is completed. To do this, you need to constantly keep in touch with the buyer, promptly answer all questions that arise. The franchisee must feel support from the business owner and be sure not to lose it after buying the franchise.

The transaction can be completed remotely, or the parties meet in person to sign the franchise sale and purchase agreement. In the first case, copies of the agreement are signed by the franchisor and the franchisee in turn and sent to each other by mail. The lump sum is paid to the seller's bank account, after which the buyer becomes the full owner of the franchise.

It is desirable that the parties meet in person to sign the contract. During the transaction, you can re-discuss key points and eliminate misunderstandings. In addition, face-to-face communication helps to strengthen partnerships.

When selling a franchise of your own business, it is important to take into account all the key points and avoid omissions and shortcomings, which can later be costly. Basically, franchisors make the following mistakes:

Absence distinctive feature and competent presentation of the advantages of a franchise over other offers on the market. Even if the business is successful and almost 100% likely to bring profit to the partner, no one wants to buy a franchise “without a twist”.
The lump-sum or royalties are disproportionately high. In pursuit of profit, business owners often overcharge franchises. Buyers, in turn, choose the best deals for themselves. To avoid such a situation, you need to objectively assess your business from the perspective of a franchisee, think about whether you would buy a franchise for that kind of money.
Calculations and described indicators do not coincide with reality. If the buyer has doubts about the veracity of the information described in the commercial offer, the franchisor must prove the reliability of the data with specific examples, conduct a tour of already operating points.
Poor packaging of franchises. In order for the buyer to become interested in the commercial offer and make sure of the reliability and profitability of the business, it is important to think over not only the content, but also the design of the franchise.
Unregistered logo, brand and trademark. The sale of a franchise is impossible without registration of rights.
Poorly drafted franchise sale and purchase agreement. Errors in the contract can lead to conflicts, disputes and unpleasant situations. To avoid such a situation, it is better to entrust the drawing up of the contract to professionals.
The desire to sell as many franchises as possible at the expense of the quality and reliability of transactions. It is important to remember that the purpose of selling franchises is not only to receive lump-sum fees, but also to strengthen your reputation and expand your own business. Therefore, you shouldn't sell the franchise to “everyone”. Before selling a franchise, it is worth assessing the seriousness of intentions and business qualities partners.
Lack of desire to help the franchisee at the stage of business formation. The seller's responsibilities include not only the implementation of the franchise, but also support and advice to a novice entrepreneur who has bought a franchise.
Lack of control over the franchisee. Sometimes businessmen who have received a lump-sum contribution give the franchisee complete freedom. Such actions can lead to damage to reputation and negatively affect the business as a whole.
Waste on advertising a franchise. If the costs of promoting a franchise exceed the size of one lump-sum payment, it is urgent to optimize the advertising campaign. Ideally, it is better to entrust it to professional specialists.

To avoid mistakes, you need to approach business with full responsibility. Most of the franchises on the market today are of poor quality and fail to generate profits for partners. To create a really high-quality product is a job that requires investment of time, effort and money.