Whether it’s a restaurant, shopping centre, or barbering shop, setting up a franchise of an existing company enables one to reduce the amount of friction required to start a new business. You will have the ability to use trademarks of an already-existing company at a fee, which will reduce the amount of effort required to increase awareness and brand recognition. Elements ranging from marketing materials to operational documents will give you the needed strategies to be successful in the marketplace or industry.
Franchising can also be a good way to grow your business since it increases the share of profits of the business. Franchisees pay a percentage of revenue to the franchisor to enable them to operate under the brand. This, therefore, saves the cost of setting up a brand new business since it is covered by the franchisee. This makes the franchising system a fantastic cost-effective way to grow businesses into new geographical regions. It is essential to note that this works well when the company is thriving, and the franchisor is well-equipped to support the franchise opportunity.
Before launching the business, a franchise agreement is needed to certify the arrangement with the franchisor. Before signing a franchise agreement, both the franchisor and franchisee should clearly understand what franchise agreements entail and the elements to look out for.
Reasons you should consider franchising your business
1. Potential to expand to new geographical territories.
Through franchising, businesses can increase the reach of their business activities to new markets cost-effectively since the franchisee covers the costs involved in setting up the business.
2. Easy penetration into markets
Franchisees perform market research in the new markets they will be setting up; this means they can attract potential customers who will support the success of the franchise.
3. Staffing Leverage
Franchising permits franchisors to operate with a leaner company. This is possible since the franchisees will handle the responsibility of overall staffing.
Steps In Drafting A Franchise Agreement.
A challenge faced by businesses is the creation of franchise agreements/documentation. But there’s now an affordable and easy solution to this. Companies can download a legal template for their franchising agreement through LaniDigital, a digital platform that houses several legal contracts & forms for personal and business needs. To sign up on LaniDigital, click here.
To draft a franchise agreement document in less than 5 minutes, follow the steps below:
2. Fill in the necessary details.
3. Make payment
To enjoy a 7.5% discount on all purchases on LaniDigital, ensure you are a Flutterwave merchant and use this link to sign up. Alternatively, on the sign-up page, you can use the referral code “LANI+FLW” to enjoy the discount offer. Legal documentation is an essential process in setting up business transactions because it is crucial to pen down the complete details of what has been agreed in writing. If things ever go wrong, one can prove what was agreed between both parties. Enjoy this discount offer by signing up on LaniDigital today.