KNOW THE OPERATING MODE WELL

First of all, an entrepreneur wishing to launch his network must understand the mechanics of this mode of operation and its disadvantages. Franchising allows an entrepreneur to grow by considerably increasing his turnover while limiting his commercial risk. Indeed, it is the franchisees who acquire the commercial exploitation rights, they therefore assume a significant part of the commercial risks associated with starting a new establishment. In order for this adventure to be a positive one, future franchisors must carefully select their franchisees from the start, in order to limit the risks of commercial or personality conflicts.

INTELLECTUAL PROPERTY

Even before starting a franchise network, an entrepreneur must adequately protect his intellectual property, which represents one of his main assets, and this fairly early in his growth stage.

It is essential to protect your company's name, its main slogans, as well as its logos and designs that allow it to stand out. The history of franchising in Canada is full of examples* where managers have tried to franchise their business without first registering their intellectual property elements or by choosing names or elements that cannot be "protectable" under the law, such as ideas or innovations in the creation phase.

TRAFFIC

For the development of a network, a certain recognition and public notoriety are essential. A franchisee's clientele must be constantly growing. An investment in advertising and marketing on the part of the franchisor is therefore not negligible. Usually, in franchise contracts, it is the franchisees who must invest in the network's advertising fund, which is however managed by the franchisor.

ASSET PROTECTION

In addition, it is important to protect the franchisor's personal assets. To do this, there are several corporate structures , including the corporation, which promote this protection, hence the relevance of understanding them and implementing them from the moment a company wishes to expand its activities to a franchise network.

STANDARDIZATION

Next, standardization of operations is another important element to consider. A future franchisor must implement internal policies as well as processes that promote the highest quality standards. As an illustration, some franchisors have an operations manual that explains all the processes to be followed for the operation of the concept by a franchisee. This approach also allows franchisors to standardize their concept.

Early preparation is essential for anyone aspiring to franchise their business. Surrounding yourself with competent professionals in the field of franchising is all the more useful in order to grow your business and avoid serious missteps.

*Companies that fail to take these protective steps run an increased risk of confusion with other similar concepts or infringement of their intellectual property assets.