When companies reach a certain level of success, expansion is on the mind of every manager. Franchising is one of the most effective ways to do this, but it can be a complicated process that requires consultation with experts to draft legal documents and for help in the exploration of the legal issues that surround the process.

However, before any of that can begin, business owners and managers need to take a few steps to make sure that they're ready for the franchising plunge. It isn't a process to begin lightly, so consider the following stops along the road toward expansion before going forward and pursuing a franchise opportunity.

Know a business
It's a safe bet that most small business owners and managers are well-aware of the way that their businesses run. After all - they wouldn't be very effective managers or owners otherwise. However, it's important that they understand every single minute detail relating to every part of a company's operation.

This means that if other managers or supervisors are in charge of a business' day-to-day operations, they should be consulted. The actions of every employee, from the accountant to the humblest stock room worker,ac need to be assessed so that when the time comes to prepare an organization for franchising, nothing is shrouded in uncertainty.

Outline how franchises will operate
Of course, once it's understood how every single part of the entire machine currently runs, it doesn't mean that there's an understanding of how each subsequent franchise should run. Managers and owners need to decide what parts of their business model are essential for franchises to retain and which can be left to the discretion of the new franchise owner.

It is also important to come to terms with what information will be sent from the original store. Some organizations wish for all the signage, forms and merchandise to be exactly the same throughout. Preparation instructions, business practices, ingredients and even decor can be different from one franchise to another, so long as the original owner decrees it.

Plan the expansion
A company that's itching to expand may very well have an idea of how a franchise expansion will proceed. Certain goods and services might thrive very well in one area but not in another, so it's a good idea to figure out where the future will take the franchises. Managers should decide how quickly they would like to see their business blossom before meeting with the experts who can help make that blossoming a possibility.

About Liberty Tax Service

Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns. With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.

Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,” and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides  computerized income tax preparation, electronic filing, and online filing through eSmart Tax.