Who can take credit for being the first to implement the franchise model is debatable. According to this REPORT by the International Franchise Association, it is widely believed that the first franchisor in the US was the Singer Sewing Machine Company in 1851. The same report also claims that others give credit to Martha Matilda Harper – who built a chain of one-component beauty salons of retail. — to be the first franchisor. Then, of course, there is the story of McDonald's, with the involvement of Ray Kroc, which many call perhaps one of the first attempts at food service franchising.

Why am I mentioning all this?

As I have witnessed in the twenty-plus years that I have been involved in franchising (on the franchising, franchising, and consulting sides of the industry), it shows that franchising was—and still is—a sustainable business expansion model with a history of tall. Over the decades, the franchise has come into its own, from a new idea to business growth in a sophisticated and regulated way of doing business that benefits both the franchisor and its franchisees. Since that first handshake agreement, savvy entrepreneur have developed best practices and trainable systems to help people, from corporate escapees buying a single franchise unit to large multi-territory high-capital landlords, build sustainable businesses.

Franchising is often considered a large and growing industry in its own right, and its principles are used by countless other industries and business models, from restaurants to automotive services, to beauty salons and retail stores, to all kinds of B2C services. and B2B. Even dentists and dermatologists (and those in many other healthcare segments) are enjoying the benefits of exclusivity in their business models.

Connected: Franchising is not for everyone. Explore these profitable alternatives to expand your business.

Application of franchise model

The word “excrimination” is derived from the French word francs, which means free. But don't be fooled into thinking that franchising is free or even cheap. It's an important commitment and one that a business owner should investigate thoroughly, starting with a self-examination. For example, you'll want to ask yourself:

• Do I have enough resources, both people and money, to expand through franchising? (As mentioned above, franchising is not a “cost-free” endeavor for the budding franchisor. You'll need, at a minimum, to develop franchise legal documents and an operations manual; business planning and marketing tools are also essential .So you'd like to leverage the capital and human resources of your current business, but do so without overextending yourself.)
• Can I afford the risk when it involves my finances and other people's capital?
• Am I cooperative and interested in building long-term relationships with franchisees (versus employees)?
• Do I have strong leadership skills and a team that inspires confidence?

After you've analyzed yourself as a business owner and potential franchisor, it's time to do the same analysis with your business to determine if it is truly franchised:

• Do you have a single unit open or several in operation, and are they profitable?
• Do you have a product, service or system that, with the right training and guidance, can be duplicated in other markets?
• Are all your systems enabled so that they can be quickly learned by someone who may or may not have experience in your industry?
• Can you show the investors who will become your franchisees that they can build a solid business according to your plan?
• Will your business, if franchised, provide a solid ROI for both franchisor and franchisee?

You may not have all the answers to these questions, and that's okay. Now is the time to talk to franchise specialists who have helped businesses like yours enjoy the benefits of franchising and who can help determine if you're ready to take the next step.

Formation of the straight path

One fact that sometimes gets lost in the equation is that once you make the move from business owner to franchisee, your day-to-day business responsibilities change, requiring a different mindset. You are no longer caring for dogs; you're setting up others in business to groom dogs – or train their employees to change tires or make sandwiches. Your business is now focused on selling franchises and supporting franchisees.

It's also important to know that before committing to you, potential franchisees will want assurances that your concept has the legs to travel to other communities where your brand isn't known and still attract enough customers to make it viable.

Let's say you have a pizza concept. People are drawn to your pizza, and you've had a few customers ask if you plan to franchise your concept. While it's always flattering to have people wanting to copy what you have in their neighborhood, there's more to it. Everyone who owns a pizza shop will tell you they have the best pizza in the world.

To start a successful franchise brand, you need, yes, a product that people want, but also something that will set you apart from the competition. You need detailed recipes, proven systems, well-documented procedures, a well-articulated brand (and trademark!), a solid marketing plan, and an established supply chain. Proprietary products and operating tools are also useful.

Ultimately, you must offer potential franchisees advantages that are better than or at least equal to what your competition offers and that they cannot easily develop on their own.

Getting the help you need

Of course, as a business owner, you don't have to do this franchise preparation work yourself. Franchise Advisors can help you create manuals, training materials and marketing plans, while the franchise's lawyers and accountants can develop the necessary legal documents and financial audits. Note, however, that franchising is a specialized field, so you want people who understand the unique structures, laws, and practices of franchising. This is not the time to try to save money by hiring a personal contact who is just starting out as a sole proprietor or for a firm that has limited franchise experience.

However, all the professional advice and guidance in the world won't help you if you don't have the spark that will ignite your business into a hot concept that a franchisee can sell. Plus, you have to be patient and not jump on the first person who shows interest. Once you have built your franchise model and started (legally) offering franchises, choosing the franchise right becomes one of the most important tasks to undertake. There's a reason why even some of the most established franchise systems have a high rejection-to-acceptance ratio when it comes to selecting franchisees to join their brands.

One of the principles of exclusivity is ENDURANCE, not just in a single store, but throughout the system. When ordering from a McDonald's, consumers want the same hamburger and fries in Portland, Oregon, as they do in Portland, Maine. They also have certain expectations, like the toilets will be clean, the service will be friendly. That's why chain hotels are so popular with seasoned travelers: road warriors don't want any surprises when it comes to where they spend the night away from home.

Final thoughts

Another consideration when evaluating the possibility of franchising a business is the familiar interview question we've all been asked: Where do you see yourself in five years? Or, to ask it another way, what is your appetite for risk and growth? How fast do you want to grow? Do you want to grow to become a regional, national or even international chain?

Defining your goals is essential. And the timing of your franchising efforts is just as important. There is something to be said for taking your time and waiting until everything is perfect before franchising your business. But the problem with this approach is that by the time you're ready to launch, your competition may already have dozens — or hundreds — of units already open. Being first to market has its advantages, but it's still a juggling act because you don't want to take a hit and misfire. Although it's possible to make changes to your system as you grow, you don't want to confuse customers (and franchise rights) by constantly changing the main items that people come to you specifically for.

Deciding when is the right time to franchise your concept can be overwhelming if you don't spend time doing your due diligence, along with some soul searching. Whether you have a passion for your product or services and want others to benefit from it as well, or are counting on franchising as a retirement vehicle, franchising will be a career and life-changing choice for you and your organization. But best of all, you'll be following in the footsteps of some entrepreneurial giants.