Kendall Ware is a seasoned expert in the field of franchising. With a wealth of experience, including leadership roles at Cinnabon and Carvel, he has successfully franchised multiple brands and helped them scale to new heights. Kendall’s expertise is highly sought after, making him a go-to resource for anyone looking to enter the world of franchising. You can connect with Kendall on LinkedIn.
Here are three key takeaways from Kendall’s discussion on franchising:
- Build a Solid Foundation: Before considering franchising your business, ensure it’s operationally sound, financially viable, and easily replicable. Kendall advises asking yourself if you’d let your own family run the business. If not, it may not be ready for franchising.
- Legal Considerations: Franchising involves complex legal processes. You’ll need a franchise disclosure document (FDD) and a franchise agreement. Kendall emphasizes the importance of consulting a franchise attorney to navigate these legal aspects which can cost.
- Strategic Growth: Don’t rush expansion. Kendall recommends growing strategically, especially in terms of distribution and product quality control. Start in your central area and expand methodically to avoid distribution headaches.
Step-by-Step Franchising Process
Here’s a step-by-step overview of the franchising process as outlined by Kendall:
- Ensure your business model is worth franchising.
- Create a franchise disclosure document (FDD) and franchise agreement with the help of a franchise attorney.
- Register in states where you plan to franchise, considering state-specific regulations.
- Define your franchisee profile and ideal customer for your restaurant.
- Start telling your brand story through press releases, social media, and targeted advertising.
- Strategically grow your franchise in areas where you have distribution and quality control.
As an expert in franchising, here’s Kendall Ware’s advice:
“Franchising can be a lucrative venture, but it’s not a ‘get rich quick’ scheme. Take the time to build a strong foundation, seek legal guidance, and prioritize quality over rapid expansion. Remember, successful franchises focus on support and delivering value to franchisees, not just collecting fees.”
Q1: Can I franchise my business without any locations?
Ans: While it’s possible, Kendall recommends having at least one successful location as proof of concept before considering franchising.
Q2: How much does it cost to create an FDD and franchise agreement?
Ans: It can cost around $20000 – $35000 to work with a franchise attorney to create these essential documents.
Q3: Should I rush to expand my franchise to multiple states?
Ans: No, Kendall advises growing strategically, starting in areas where you have distribution and product quality control.
Q4: What’s the purpose of the marketing fund collected from franchisees?
Ans: The marketing fund is used to support marketing efforts, brand awareness, and growth of the franchise as a whole.
Q5: Is franchising a guaranteed path to success?
Ans: Franchising offers potential for success, but it requires dedication, careful planning, and ongoing support to thrive.
Q6: What are the key components of a Franchise Disclosure Document (FDD)?
Ans: An FDD typically includes information about the franchisor’s history, franchise fees and costs, territory rights, obligations of both parties and more. It’s a legal document that provides essential details about the franchise opportunity.