So you have sold your first franchise and are hungry to sell more. Better slow down, this is the number one fault of most franchisors is to start taking on more franchisees than they can handle. You need to ensure a controlled growth and only take on those franchisees that are a definite fit rather than the one who can simply afford the fees.  Now, getting all of this down on paper is the other portion of the business some don’t recognize. Like most things, the excitement is 5% of the sale, the other 95% is the paperwork involved.

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A Franchise Document System, or a Franchise Operations Manual, is easy enough to create and consists primarily of an exhaustive index of material numbered to what each form, policy or contract does.

The very first franchise sale is one of the most important as it details how the rest will need to be performed or if changes need to be made. The learning experience on this one act alone will clearly show if the bond between franchisee and franchisor will be strong. You will both have a learning curve and need to adjust accordingly.

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As the first franchisee you have an excellent opportunity to be in on the “ground floor” or “grassroots” of the franchise organization. This often entitles you to be consulted about many decisions on the direction of the organization and any time that needs a re-write. This is your time to shine as your ideas will be put into use for the next new franchisee. So if you want to make an impact into your new franchise business this is the best way to do so – be the first!

Until you have sold your first franchise you won’t know the cause and effect of your marketing. Most often when someone starts their own franchise system they layout thousands of dollars on marketing with certain websites, print ads or even radio spots. What should have happened is creating a buzz on the internet using a good marketer rather than listening to an old school franchise counselor.

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If selling your franchise system was only the hurdle you had to encounter business would be a breeze. The second largest hurdle is in the paperwork. Creating this information is almost a nightmare when beginning your franchise system. Sure you know your business backwards forwards and all around, now out it on paper in easy to speak terms with lots of bullet points and a great index.

Franchising is a system for marketing goods and / or services and / or technology which is based on a close and continuous cooperation between companies which are themselves legally and financially separate and independent: the franchisor and its individual Franchisees, whereby the franchisor grants to its franchisees the right and obligation to operate under the franchisor’s concept.

This right entitles and requires each franchisee to against a direct or indirect remuneration to use the franchisor’s business name and / or trademark and / or service mark, know-how, business methods, technology, processes, recipes and other intellectual property rights, all underpinned by a commitment of the franchisor to provide continuous commercial and technical assistance within the contract period and pursuant to a written franchise agreement for this purpose concluded between the parties.

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