How to Franchise your business ? Once you establish a successful business, you could consider expanding your operations by franchising. Franchising is a way of selling to others the right to run a style of business and sell a product or service for a period of time. 1. Franchising Code of Conduct As a franchisor, you must comply with the Franchising Code of Conduct. This Code regulates the conduct of participants in franchising towards each other and ensures that prospective franchisees are sufficiently informed about a franchise before entering into it. The Code also provides a cost-effective dispute resolution scheme for franchisees and franchisors to resolve any disputes. 2. Franchise agreement and operations manual Franchise agreements should be written by a solicitor experienced in franchise issues, as the agreement is a legal contract that outlines the rights and obligations of both the franchisor and the franchisee. You should also create an operations manual that sets out in detail how the franchise is to be run. Both the agreement and manual are important in ensuring a successful franchise. 3. Franchising and intellectual property (IP) Your trade mark, business method or unique business idea can be the basis of a successful franchise business. As a franchisor, you need to ensure you protect your IP and develop clear guidelines for its terms of use before entering into an agreement. 4. Franchising disputes The Franchising Code of Conduct sets out a clear process for the resolution of disputes in the franchising relationship. If a dispute occurs and it cannot be resolved between the franchisor and franchisee, the Office of the Franchising Mediation Adviser (OFMA) can help you resolve it without going to court. 6. Franchising your business overseas If you want to franchise overseas, you will have additional requirements. You will need to conduct research on the country you wish to start in, to find out what requirements they have for starting a franchise.
Posted on: Mon, 05 Aug 2013 21:00:00 +0000
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