Franchising Your Business

To get started in franchising, you first need a great system. When people buy into a franchise, what they are really buying is a proven, turnkey, money-making system. You must be able to show that your

business formula can be duplicated, and that the same results can be replicated by novices who buy your system.

That said, what you are initially looking for in potential franchisees are people with both money and some expertise. Especially in the beginning, it's important that you franchise to people who are not novices — i.e., those who know something about your particular business or industry — as the chance of their success is much greater. If they succeed, then you succeed, and vice versa. Later, when you have established your franchise business and perfected your system, the expertise of your franchisees becomes less of an issue.

Potential franchisees also must be willing to pay your franchise fee. These fees can run anywhere from a few thousand dollars to $500,000 for a McDonald's franchise.