From time to time I'm asked by business owners what they need to do before they start down the franchising highway. Following are certain tasks that should be completed before beginning the franchising process. Most of these items are a plus for a small business even if the decision is; not to franchise.
1.Trademark the brand name and any logos. A must for any business that is considering growing, whether through company owned units or franchising.
2. Have a website. The website should be high quality. Don't rely upon an inexperienced website developer. When it comes to your website, quality is more important than quantity.
3.Do a business plan that includes the key components including financial pro-forma income statements.
4. Have good financial statements that reflect a true and accurate portrayal of the business. Franchising aside, if you ever want to sell your business you'll need this information.
5. Be prepared to set up a nucorp for the franchise entity. Since you'll need audited financial statements for your Franchise Disclosure Document it's more cost effective and cleaner to use a new entity.
These are key steps to follow if you're seriously considering franchising your business. Do this yourself and save the consulting fees for launching your franchise program.