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The franchise model can work well for mobile business concepts. Franchising involves business owners giving others (franchisees) the right to run a business replicating their business model, processes and systems. Mobile companies are popular for their convenience. Their flexible nature means that business owners can operate from different locations. Mobility is also appealing to customers, who can receive services more conveniently. This article will explain how individuals can set up a mobile franchise business.
Mobile Franchises
In the UK, popular mobile franchises include:
- cleaning services;
- automotive repair services;
- caterers and van-based coffee vendors; and
- vending suppliers.
A benefit of mobile businesses is that they typically come with lower overhead costs compared to traditional brick-and-mortar establishments. Mobile enterprises are financially attractive as they avoid a fixed location, rent payments, utility bills, and property maintenance costs. For this reason, mobile franchise opportunities can mean franchisees incur lower initial fees.
Mobile franchises can adapt to changing conditions by moving around. The business’s mobility allows for quick adjustments in light of market demand. Franchisees can directly reach their target audiences by choosing particular locations and events. This direct access permits them to create a more personalised customer experience.
How To Set Up a Mobile Franchise Business
Setting up a mobile franchise involves several essential steps to ensure franchisees can successfully replicate your business. Let us explore these further below.
1. Establish a Proven Business Model
Before considering franchising, ensure that you have a successful mobile business model. It should be well-established and successful in its current operations. Successful franchisors begin with a proven business model that franchisees can easily replicate.
2. Prepare Essential Franchising Documents
To franchise your business, you need to draft a franchise agreement. The franchise agreement is the contract you share with your franchisees. It is a fundamental component of your relationship. It includes details such as:
- your roles and responsibilities and those of the franchisee;
- the duration of the agreement; and
- renewal and termination terms.
The franchise agreement should also define the franchisee’s exclusive territory. Exclusive territory is a crucial concept in mobile franchising. It refers to the geographic area within which a franchisee has the exclusive rights to operate their business. You will not permit other franchisees in your brand to work within another franchisee’s exclusive territory.
It is an excellent idea to seek legal advice at this early stage. A lawyer can draft the franchise agreement for you, ensure your business model adheres to legal requirements and mitigate potential risks.
Another vital document is the franchise operations manual. This manual is a comprehensive guide on everything a franchisee needs to know about your brand and unit operations. It will also include aspects such as troubleshooting guidance. Consider it a living document. You will update it to reflect changes within your brand.
This handbook covers all the essential topics you need to know about franchising your business.
3. Develop Training and Support Systems
As a franchisor, you must train new franchisees and support them for the duration of the franchise agreement. You should create a comprehensive training program that prepares them to run a successful business unit within your brand.
Within the training program, you can teach franchisees the industry-specific knowledge they need to operate and everything they need to know about running a successful mobile unit. Your planning matters as franchisee training can dictate brand quality.
4. Recruitment
Once your essential documents are in place and you have developed a training program, you can consider recruiting franchisees. Throughout this process, ensure you prioritise seeking quality candidates who can uphold your standards. Franchisees who underperform can significantly impact customer perception.
Interview, find suitable candidates and ensure you conduct thorough due diligence. Your due diligence can include background checks and contacting prospective franchisee’s referees.
Once you have found a suitable candidate, give them time to consider the franchise agreement. Once they sign it, take the initial fee and begin to train them to conduct their roles. Consider scaling your franchised brand when you have successfully established your network.
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Key Takeaways
Mobile franchises can be particularly attractive to franchisees as they typically have lower overheads and franchise fees and can adapt to the evolving local market.
If you would like to create a mobile franchise network, there are several steps you should take. These include the following:
- establish a successful and replicable business model;
- seek legal advice to help navigate the early franchising process and mitigate risk;
- prepare essential franchise documents, such as the franchise agreement and operations manual;
- develop comprehensive franchisee training and support systems;
- recruit franchisees and conduct due diligence;
- train the new franchisees; and
- evolve and scale your brand.
If you need help setting up a mobile franchise business, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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