Simplifying the Franchise Development Process: No Hocus Pocus, Just Solid Strategy

Franchise Development Process

Franchise development can seem like a maze of jargon, high fees, and endless processes, especially when you're bombarded with consultants promising you the world. But here's the truth: it’s not that complicated. Sure, it requires effort, but you don’t need to be intimidated by the so-called “mysteries” of franchising.

Let’s break it down into six essential steps to make the process as transparent as possible. Trust us, you’ll see that franchising your business is more straightforward than you think.

Step 1: Strategy – The Foundation of Everything

Before diving into any paperwork, legal requirements, or fancy models, you need to set your direction. This is where you ask yourself the tough questions:

• Why do you want to franchise?

• When are you planning to exit?

• What roles are involved in your value chain, and where do you need to plug gaps before you hit the launch button?

This stage is all about clarity. The more crystal clear you are on your business direction, the smoother the journey will be.

Step 2: Economic Modelling – Proving It Works

Now that you’ve got your strategy in place, it's time to crunch the numbers. Before you start pitching your franchise opportunity to anyone, you need to show that your concept is financially sound. Not just for you, but for your future franchisees too.

This is more than just a financial model – it’s a test to see if your business is viable for franchising. You'll want to prove that your business will be profitable for everyone involved, which is also a legal requirement under the Franchising Code of Conduct.

Step 3: Legal Frameworks & Documentation – Lay the Groundwork

Now comes the heavy lifting – setting up your legal documents. Too many consultants wait until the last minute for this, which can lead to oversight and legal nightmares down the road.

The legal framework isn't just a formality. It’s the backbone of your entire franchise system. This framework outlines how you and your franchisees will work together, ensuring everyone’s rights and obligations are crystal clear.

It’s essential to document your operational and commercial policies in line with your legal framework early on – this will save you headaches later.

Step 4: Preparing Your Operational Toolkit – Know Your Business Inside and Out

This is where things get really interesting. Sure, there are plenty of off-the-shelf templates out there for operations manuals and commercial policies, but let’s be honest: no one knows your business like you do.

Use those templates to spark your creativity, but don't settle for generic content. Dive deep into your business, capturing the essence of your brand, your values, and your systems. After all, this is what will attract franchisees who want to be part of something special.

Step 5: Recruitment – The King of All Steps

Here’s the thing: all the hard work you’ve put in so far culminates in one major step: recruitment. If you’ve done the previous steps right, the recruitment phase should be a breeze. But here’s the kicker: be cautious of recruitment agencies that promise too much without backing it up.

You need to make sure that any recruiter you hire aligns with your brand and values. Get a detailed marketing plan, access to their tech, and ensure you can audit the prospects you’ve paid for. This step is crucial because the success of your franchise network depends heavily on the quality of the franchisees you bring on board.

Step 6: Franchise System Launch – Market Like You Mean It

A big mistake that many franchisors make is neglecting the power of marketing during their launch. Yes, you have a strong business model, great legal framework, and solid franchisees, but what good is any of that if you don't have a marketing strategy that’s going to draw customers to those franchise locations?

Remember, franchisees aren’t just buying into your brand – they’re investing in the promise that your brand will attract customers. Integrating a solid marketing plan into your franchise development process is crucial to your success.

My Conclusion: It’s Not Rocket Science

As you can see, franchising doesn’t have to be cloaked in mystery. While it requires careful planning and attention to detail, the steps are clear and straightforward. No hocus pocus here – just practical strategy, sound financial models, legal documentation, and a strong marketing plan.

If you’re ready to take the next step in franchising your business or need help along the way, don’t hesitate to reach out. We’re always happy to chat and help you navigate the journey.

Happy franchising!

Bio - Barry Money, Founder - Bane Enterprises

For the first ten years of Barry’s career, he consulted in global franchise standards and led significant transformation and innovation projects.

Barry has diverse corporate experience across multiple disciplines including sales, marketing, customer service, product management, export, quality assurance, engineering, IT and supply chain with full accountability for P&L.

At the end of Barry’s corporate career, where he earned the nickname “Goliath Slayer,” Barry transitioned to the C-Suite. Barry Money is a graduate of the Australian Institute of Company Directors and a C-Suite professional, with an MBA in entrepreneurship.

Barry has held director, board member, CEO and leadership positions in start-ups, NFPs, Founder-operated entities, industry peak bodies and commercial organisations. 

He held a leadership role at Australia’s largest franchise group, where he was instrumental in driving disruption and growth.

Barry has worked in franchised industries, franchise consulting companies and some of the largest franchised brands globally.

After many years living and working all around the world, he is fluent in Japanese, French, German and conversant with several other languages.

A dynamic, results-driven leader who prides himself on lateral, entrepreneurial thinking and creativity, Barry is renowned for developing and fostering strong teams and a collegiate spirit.

Barry Money now heads up Australia’s ethical, efficient, effective, end-to-end choice for franchising solutions, Bane Enterprises.

Contact details

E: online@baneenterprises.com