How to Turn Your Business into a Franchise? [Step-by-Step]

Reem Tarek

Content Creator

May 30, 2022

**Your complete guide to turn your business into a franchise**

If you think that franchise businesses are all famous restaurants and famous fast-food chains such as MacDonald’s and KFC…you need to think again!

Egypt has around 600 franchise companies operating in the country! And they are not all food-related businesses, there is a bigger variety!

Consider a franchise as a business in a box; branding, marketing ideas, sales and marketing training, and field counseling are all provided by franchisors to their franchisees. Before making the long-term and legally binding commitment of becoming a franchise owner, franchisees must do their research and ask the proper questions.

It can be immensely rewarding to run your own business, but it can also be challenging to create and sustain on your own. Your years of hard work are paired with the franchisor’s established marketing techniques, training programs, and retention solutions, when you join forces with a well-known franchisor.

When you decide to start a franchise business with a well-known brand, you'll have a team of people behind you. For instance, Tayf, your fellow investment management company, that can help you a lot in that case! We help you to reach out to the brands and finish the deal.

Before we jump into starting your franchise business, let us dive deeper into franchising!

Franchising is based on a marketing idea that can be adopted by an organization as a business expansion strategy. It is a legal and business partnership that can assist in the expansion of your company.

A legal agreement involving the license of a trademark, the payment of a fee, and control over the operations of a business creates a franchise. When you franchise your business, you'll be responsible for drafting the legal documentation, pre-sale disclosures, and operational requirements necessary to comply with franchise regulations and sell franchises to people who will become your franchisees.

You will grant franchisees the right to develop and open new sites using your trademarks, business processes, suppliers, training, and ongoing assistance as a franchisor. Franchisees will pay you fees in the form of an initial franchise fee and ongoing royalties, as well as the capital required to build new sites under your brand. Franchising, when done effectively, creates win-win situations.

Turning your business into a franchise and becoming a successful franchisee!

Are you ready to create a franchise out of your current established business model and become a successful franchisee? As you prepare to choose the path for expanding your business, you have to consider these steps prior!

1. Identifying your own set of abilities

First and foremost, you must examine and be honest with yourself about your ability set. List all of your prior jobs, positions, and responsibilities on a piece of paper. Make a list of your strengths and shortcomings, your likes and dislikes, as well as significant points from previous evaluations and transferrable talents.

You're going to be the boss, at least at first. You'll be in charge of managing, mentoring, and evaluating employees, as well as making managerial choices. You have to have a personality of managing and directing. You also have to keep an eye for details and be aware of everything around you. Can you push yourself beyond your comfort zone to improve your soft-skill set through training and development? Let that sink in!

2. Putting your passion into words

Many people's initial inquiry regarding any business opportunity is, "How much money will I make?" It's an interesting question, but it's not the appropriate one. Instead, ask yourself, "Am I going to love my job and get along with my co-workers?" You should be able to define what makes you happy both personally and professionally, and your company should share your values and ideals. Your philosophy should align with that of the main company.

3. Determining the amount of money you want to invest

How much money do you want to put into it? You must be confident in your ability to make a large-scale investment requiring a large amount of liquid funds. If you're overworked to the point of exhaustion, you'll make decisions that aren't in the best interests of the company. Understand all of the costs associated with launching your first franchise and make sure you have the money to handle them.

4. Develop a growth plan

Consider expansion from a strategic standpoint when developing your growth strategy. Selling more is the safest approach to do so. Consider how you can expand your market share. Can you offer your products or services in a different market, a different neighborhood, or even a different city? This is where franchising might be a good option for expanding because it benefits both the franchisor and the potential franchisees.

5. Think of ways to simplify operations

To promote expansion, good growth strategies are essential. If you're thinking of franchising your own business, no matter what industry you're in, look at all aspects of it and search for ways to simplify without abandoning what made you successful. Look for ways to reduce costs and simplify the process so that it can be easily repeated. Find the proper people to assist you in developing a solid expansion strategy.

6. Determine your own role

Decide whether you want to be an owner-operator, a semi-absentee owner, or an absentee owner. Some businesses insist that you must be an owner-operator. Others may argue that you can simply acquire a franchise and it will operate by itself. Neither is entirely accurate, your function in the company is more of a process, and you have control over how that process is carried out. Running a business isn’t like investing in stocks; you don't buy it and wait for it to make money. You should determine your ownership and your role!

7. Choosing the brand that best fits your interests and budget

There are a lot of franchise businesses you can choose from but you have to take into consideration which are you passionate about and fits your interests, as well as what suits your budget!

8. Consult current and previous franchisees

This may sound cliché, but seeking a previous successful franchisee could help you a lot. You should sit with franchisees who operate businesses that interest you; the simplest way to do so is to simply go to the location and ask to speak with the owner. They'll be able to tell you other details you probably didn't consider.

Tayf, your ultimate investment management company, that could help you through it all!

**Tayf is the local investment company that can help with the franchising process**

We’re located in New Cairo, we strive to add value to the Egyptian market by creating unforgettable experience. We invest in franchises and help you hunt new franchise opportunities that are needed and profitable in any market. Furthermore, we support you in reaching out to the brands and finishing the deal. We believe that investing in a franchise can be a great opportunity.

There are many reasons why investing in franchises is a smart move. This fact on its own pushes your business forward years in advance! The brand name and loyal customer base already come built in with the business.

Here are some benefits to consider:

· A recognized brand name

· An established business model that leads to faster Return on Investment (ROI)

· A loyal customer base

· Knowledge and experience built-in

· Strong purchasing power and easy market entry

So, when you are ready to venture into franchising, you now know who can help!

References:

https://topfranchise.com/international-franchise-opportunities/african/franchises-in-egypt/

https://www.franchise500.com/article/368533

https://www.franchiselawsolutions.com/learn/how-to-franchise/#much

https://franchise.neighborly.com/how-this-works/ways-to-own/

https://www.entrepreneur.com/article/377085

https://www.franchise500.com/article/287874