How can I turn my business into a franchise?

For business owners considering expansion by franchising their model, Entrpreneuer's contributor Jeff Elgin shares these insights:

Question: How can I turn my business into a franchise?I want to start tea and coffee business vending machine franchise.



Answer:
My first suggestion is that you need to walk before you can run. This sounds like a great idea in theory but you need to put the theory to test to make sure it works in the real world.

It sounds like you haven't actually started your first business yet. You will need to start the business first and then run a number of vending machines for a while so you can get the business figured out from a marketing and operational standpoint.

You'll need to develop all of your sources for machines, supplies and your inventory of coffees and teas. Then you'll need to make sure the business can operate profitably for a period of time so you can demonstrate that success in some form or fashion to prospective franchisees.
Even at this point in time, you'll then have to determine if franchising the business makes economic sense. There are many costs involved in starting a franchise company and the total investment to reach breakeven in a franchise company operation for any concept can easily reach over a million dollars.

It may be wiser for you to expand the business in another manner other than a franchise. You can receive expert advice once you get to this point in your business from a good franchise attorney--they will help you make sense of your options.

Look for more articles and research regarding franchising and licensing in the OED Community.

What do I need to know before I buy a franchise?

Entrepreneur.com ran a Q&A regarding franchises. For many would-be entrepreneurs, franchise opportunities provide a tangible model with turn key implementation. Contributor Jeff Elgin provides a quick answer and guides research:

Question: What do I need to know before I buy a franchise?

What questions should I ask the franchisor and how do I find the best market and location?

Answer:

This is one of those questions that's quick to ask but involves a long, multi-part answer if you want the full scoop. I'll try to give you the quick and dirty answer.

What you want to see in any franchise is a strong positive track record of performance that you can verify during your research. This gives you the security of knowing that lots of other people have gotten a franchise with the company and then done well. If you can't find this sort of track record with any franchise you're researching then find a different one to pursue.

If you would like to receive additional information about all of the many facets you should be investigating with any franchise, you can access the archived articles I've written for Entrepreneur.com over the past 10 years.

You'll find a record of over 100 articles with all the information you'll need to get a very strong idea of everything you'll need to know.

To see the original post and related Q&A regarding franchises, visit - Entrepreneur.com