One thing you absolutely must get right is your market research and preparation before committing to starting your own franchise. It's very easy to waste a lot of effort and money on a franchise idea which is doomed to fail.
It sounds impressive to say "I own a franchise" but try not to get caught up in your hopes and dreams without the benefit of cold analysis and being utterly realistic. It's all to easy to believe what you want instead of what's real.
Thorough market research should involve about 6 months to a years work and it's only once that is complete that you should start to move into the actual process of franchising your business.
The first franchisee is always the hardest to get. This is because your franchise model will have no track record and it'll be harder for people to trust. In effect they'll be taking a bigger risk by buying your franchise instead of another which does have a proven track record.
In order to make it easer to sign your first franchisee you can offer a reduced initial fee and/or reduced royalty rates. This is to sweeten the attractiveness of buying into your franchise and to reward them for taking the potential risk of an 'unknown runner'. It's only fair they be rewarded for that.
If this initial franchisee does well you'll have some proven track history and can raise your fees back up to their correct market value.
Of all the stages in franchising, the success of that first franchisee is probably the most crucial. It's advisable to baby sit them to a greater extent than you normally would in order to help them succeed. You see their success is directly linked to the success of your franchise, they are one and the same.
In the next article we'll look at the importance of interviews and choosing the right kinds of people to be your franchisees.
The writer is a successful businessman who operates his own music franchise. You can also check out his excellent online product reviews on inground pool prices and find some fantastic deals for inground pool kits by visiting his site.
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