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.