Author: Enterprise Canada | Date: 31 October 2017
MISSISSAUGA, Ont. (October 31, 2017) – As Canada’s economy continues to expand at its fastest rate in years, a growing number of business owners in Canada and the United States are looking to tap into that success through franchising.
But franchising your business isn’t as simple as just finding someone who is willing to buy into your company’s brand and business model. Careful research and detailed planning are crucial to establishing a viable franchising system that will stand the test of time.
“Business owners can’t rely solely on the hard work and passion they put into getting their companies off the ground to guide them through franchising. Making the transition from a single enterprise to a viable franchise system requires a different approach than launching a business from scratch,” says John Goodish, Vice President of Franchise 360.
With this in mind, Franchise 360 offers the following tips to help businesses on both sides of the border in all sectors navigate franchising:
Get your docs in order
Franchising a business requires very specific legal documentation. You will need a franchise disclosure document containing detailed data to help prospective buyers make informed decisions, as well as a franchise agreement and an operations manual — essentially a how-to guide into running the business.
Create a development strategy
There are various options for franchising. Some businesses sell rights to a certain territory — such as a city or a province — while others prefer to sell rights to a set number of units. You need to create a strategy to guide growth for your market. Getting this correct at the beginning will save time and money down the road.
Revisit your branding
Before you franchise, it’s wise to take a second look at your branding and make sure it reflects your expanding business model. An up-to-date image is essential to success. If you’re a U.S. operation looking to sell franchises in Canada, you’ll also need to establish Canadian domains for your business.
Decide on a marketing strategy
How are you going to identify and recruit potential franchisors? Is this something you can tackle yourself or will you enlist guidance from established experts, who will do the groundwork and connect you with qualified prospects. Look for a company with a tested marketing plan for recruiting prospects.
Navigate the sale
Just as it’s important to put together proper disclosure documents at the beginning of the process, it’s extremely important to follow all regulations during the franchise sale and ensure your sale paperwork is professionally prepared to meet all legal and regulatory requirements.
“With Canada’s economy accelerating and our GDP climbing, the conditions are fantastic for small businesses to grow and to flourish through franchising. We’re seeing a lot of interest from business owners who feel time is right to explore the franchising market, as well as from people who want to buy new and resale franchises,” says Goodish.
About Franchise 360:
Based in Mississauga, Ont., Franchise 360 is a Member of the International Franchise Professionals Group (IFPG) and will bring a host of resources to assist you in your search. Franchise 360 is the franchise arms of AR Business Brokers, providing clients with a full range of services. When clients work with a professionally trained franchise consultant from Franchise 360, you are tapping into a franchise professional who has a process in place to help you succeed in your search for the right business.
For more information, visit www.franchise360.ca. We can also be found on Twitter @Franchise360, LinkedIn at Franchise 360 and Facebook at Franchise 360.