QUESTION ON How to Franchise Your Business
I have a fairly successful home based business I started in my spare bedroom 2 years ago. I started from nothing and grew the business dramatically to over $120,000.00 in the last year. Growth has slowed but consistently gains over last year.
What I want to do is form a franchise for my business and sell it to others as a home based business. I’m hoping, if things go according to plan, to be able to have all my domains working as separate businesses that I will lease to people who want an Internet Business but don’t have a clue how to start it or to do the web work and “lease” it to them (for lack of a better word) while I remain control of the domain name until the lease period is up. (Say… a year, or whatever we agree on.) In a nut shell, I will have a website with the product catalog. Each domain will be linked to that store catalog, though the business will be owned by several different people. They pay me an “Upfront” fee $3500.00 (again I haven’t worked out all the figures yet) for an established running business. (Like they walked up to a fully furnished Sears store and all they had to do is unlock the door.) The up-front, non refundable fee covers the website, fully automated, the product, hosting fees etc, everything in a nutshell. I get and keep a copy of the credit card they want to use for their business and I charge them a monthly fee of $150.00 for the domain, web hosting & maintenance of the catalog.
When they get an order a copy is sent to them and one to our Wholesale Warehouse. Each order is product that will be purchased from our Wholesale store. We use our merchant account to process their sales , and we will charge them a flat .50( or whatever) per transaction. If they want to get their own Merchant account and process their own sales we will have an option for that as well. Then our Wholesale Warehouse will drop-ship their order to their customer, using the name of their business so the customer is never the wiser.
Then after the agreed on price is met, they have the option of continuing on with us doing the work and paying us a fee, or they can go on their own and at that time the domain would be transferred over to them. WHO do I contact to make this a reality? Where would you go with it? I need a business councilor or something, someone who can help me structure this… who is it that does that sort of thing?
>> RELATED: Directory of Home-Based Franchises
I commend you on your vision! Many people want to get from point A to point B, but do not know how to get there! You know what you want and need to do, and just need a few resources to make you reach your goals!
Freelance/Freeagent business managers DO exist, is just a matter of finding one that you can work with and that specializes in what you require. But, first, I recommend finding a SCORE (Service Corps of Retired Executives) counselor that you can consult with. These are volunteers offer free counseling services, and are ‘been-there, done-that’ people. I have one that I visit with via email on a regular basis, if for nothing else than to just bounce some ideas off of. You can check your local phone directory to see if they have an office near you, or go to http://www.score.org to do an online search.
If you want to work with an individual, and not a company, you need to find a consultant who either has the knowledge to do what you want (probably less expensive), or has the experience. To find such a person, it may behoove you to conduct some searches at major job opportunity websites, such as Ants.com, Guru.com, Monster.com or FlipDog.com. You have done well in knowing how you want the business to be set up, but be sure to be very specific about the duties you want such a consultant to perform. Additionally, you will need an attorney who specializes in setting up franchises to complete the paperwork for such.
Your other option is to work with a company who does nothing except help set up franchises. The one that I have had discussions and am familiar with is FranCorp (http://www.francorp.com). I cannot vouch for their work, but they were professional when I asked for more information about what they do. By using such a service, they help set the franchise of your business up, and then you can focus on the marketing aspects once the paperwork is complete.
I hope I have given you a starting point to begin your research. Best of luck and feel free to contact me if I can help you with anything else!
Recommended Resources on How to Franchise Your Business
- Franchising & Licensing: Two Powerful Ways to Grow Your Business in Any Economy
- So You Want to Franchise Your Business
- One Simple Idea: Turn Your Dreams into a Licensing Goldmine While Letting Others Do the Work
- Franchising For Dummies
Article originally published in January 2001. Updated March 5, 2012
Tammy Harrison is a successful home-based working mom for over five years. She holds a degree from Mizzou in Consumer Economics. Her business focuses on Marketing and Creativity for Small Businesses as well as numerous other small businesses.
- Knowing the Do’s and Don’ts in Buying a Franchise
- Researching Franchise Opportunities through Franchise Exhibitions
- Pros and Cons of Starting a Franchise Business
- Franchise Opportunities: 5 Important Points to Consider
- Buying Your First Franchise