Quick Guide to Franchising Your Business

4. Get legal. To franchise, you need to develop the appropriate legal documents. In the U.S., those include your franchise agreement, Uniform Franchise Offering Circular and, depending on where you'll be selling franchises, registration of your franchise offering with state agencies. Don't take shortcuts here. Hire an attorney who specializes exclusively in franchising.

5. Sell it. Franchise sales start with lead generation. As a new franchisor, you should budget for a minimum of $5,000 to $7,000 per franchise sale on media alone. You'll also need first-class marketing materials, such as brochures, videos and a website, to support your franchise sales efforts. But keep in mind one of the most important rules in franchising: Be selective in the franchise sales process. If you aren't confident a prospect will succeed, take a pass.

6. Make them succeed. In franchising, success begets success. If your franchisees are wildly successful, you'll find that your franchises practically sell themselves. But if your franchisees fail, no amount of marketing or sales efforts will rescue your system. So be sure you do everything in your power to make your franchisees successful.