Published on July 29, 2010 – Updated on October 10, 2013
Create your network of franchisees
For several years you have been testing a commercial concept that you believe is original? Do you now want to offer it to a network in order to cover a wider territory? Join some 1569 French franchisors. Don’t miss the steps to your success. Becoming a franchisor is a strategic development choice that requires time and money. You will have to analyze your know-how, share it, help to put it in place without diverting it and of course, in accordance with franchise practices, create network solidarity in order to generate a win-win environment for yourself and your franchisees.
Summary
Validate your franchise concept
You are embarking on a partnership adventure where you must to convince business leaders other than your concept is original and winning.
You have to show that it responds to a market need. But above all, make sure you know your concept. Start by answering questions such as:
- what are the secrets of my success?
- what makes it successful in terms of products, services, merchandising, brand…?
Define it in great detail so that you can talk about it without hesitation.
Test your concept
Once your concept is well defined, test it.
Put in place pilot unitsthat is to say branches, in which you will replicate it. And observe them for several years.
Experts recommend studying 2 units for 3 years Where 3 units for 2 years.
Don’t choose the settlement areas by chance.
Realize your marketing studies and take the opportunity to define your territorial coverage. Where would you like to set up in 2 years, 5 years and 10 years ?
Develop your tools
To develop your tools:
- define your IT network tools (intranet or extranet to communicate with your franchisees, etc.);
- drawing on your experience and the observations collected from your pilot units, establish a Operating Manual. It defines in detail your expertisethe concept and its implementation, products, sales techniques, communication tools;
- write a preliminary information document (DIP), the document that you must legally provide to your future franchisees at least 20 days before signing the franchise agreement;
- draft your franchise agreement in accordance with French law and European practices ;
- Think carefully about the essential elements of the franchise contract: its duration, entry fees and royalties, conditions for renewal, transfer or termination.
Recruit your franchisees
Finally, recruit your first franchisees. Do not choose them at random.
Thanks to their feedbackyou will improve your franchise model and effectively expand your network.
They must be motivated and ready to play the game of close collaboration.
Our tips:
Don’t hesitate to surround yourself with professionals specializing in franchising: lawyers, communication agencies… Plan a budget of €70,000 to €150,000 and a period of 12 to 18 months before any recruitment.