Once you have identified that your business has the potential for franchising and evaluated pros and cons of the same, you can go ahead and start thinking about how to build your franchise model. 

Successful franchising is like a marriage; both the franchisor and franchisee have to work to build a successful relationship that prospers in the long run. There are certain broad guidelines you must keep in mind when entering into the franchising domain:

Decide your scale of expansion

Once you decide you want to franchise your business, you must narrow down the areas of expansion. Some businesses are comfortable growing locally while some eye international growth and expansion. You have to evaluate the demand, competition and familiarity of your brand in new markets that you wish to enter. You have to also decide the geographical territory (limit) that you will be offering to each franchisee.

Work out the legalities

In most countries, there will be laws governing franchises that you will have to follow and do the documentation accordingly. You need to decide things like a franchise fee, the percentage of royalty fee, the net worth and working capital your franchisees need to have and other terms of the franchise agreement. If you set clear terms from day one, it is more likely that your franchise model will succeed.

Prepare operating and training manuals

The success of a franchise lies in successful replication of an existing business model. You cannot expect a new franchisee joining the business to know how you set up things and moved ahead. You will have to spell out all the operating details related to your business in a clear and concise operations manual. This is the sacred document in a franchise arrangement that guides franchisees every step of the way. You will also need a training manual for them to train their staff and for you to train all your franchisees.

Hire sales and support staff

Once your documentation and detailing is in place, you will need to hire people for selling your franchises and offering constant, ongoing support to the new people who join in. You will need dedicated and sharp sales staff, who can screen potential franchisees and make successful conversions. Your support staff will have to be trained to offer both online and offline guidance to franchisees as and when needed. As a business owner, you will have to screen and mentor each franchisee individually.  

Be compulsive about growth and quality

As the franchisor, you will have to be firm and often compulsive about growth and quality standards to be maintained at each franchise outlet/ point. The failure of any single franchisee can lead to loss of reputation for the brand, and hence, certain things should not be compromised. If you are in the food industry, hygiene and quality of ingredients used should never be compromised. If you are in the retail business, customer queries should always be answered. Make sure that each of your franchisees know they will have to work hard to make this a win-win partnership.