{"id":221299,"date":"2023-03-01T17:43:12","date_gmt":"2023-03-01T04:43:12","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=221299"},"modified":"2023-03-30T18:50:07","modified_gmt":"2023-03-30T05:50:07","slug":"start-an-online-franchise-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/franchising\/start-an-online-franchise-business\/","title":{"rendered":"How Can I Start an Online Franchise Business in NZ?"},"content":{"rendered":"\n

Franchising is a great strategy to expand your business. For instance, you can allow others to use your IP, systems and processes. Indeed, the technology sector is growing significantly, making online franchises popular. Therefore, establishing an online franchise may be perfect if you own an online business. This article will guide you by outlining how to start an online franchise. <\/p>\n\n\n\n

\n \"Front\n
\n
Franchisor Toolkit New Zealand<\/div>\n
\n

This publication provides you with the fundamentals for franchising your New Zealand business, including set up, branding and management.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Determine How You Will Divide Up Territories<\/h2>\n\n\n\n

Starting an online franchise can be challenging when determining how best to divide the business into territories for each franchisee. Therefore, you must consider how you will licence your business model to your franchisees, especially in the context of an online business. For example, where your online company sells products or services, you must consider how and if you will provide your franchisees with an exclusive territory or area to sell those products and services. Further, you should determine whether this area will be exclusive or non-exclusive. This means they will have the sole right within an area to service customers of the franchise network, excluding other franchisees. <\/p>\n\n\n\n

\n

A non-exclusive franchise means the franchisee can provide the goods or services to anyone, regardless of potential competition from other franchisees or even yourself as a franchisor.<\/p>\n<\/div>\n\n\n\n

There are various ways online franchises divide up their territories or work. One way is to provide a franchisee with specific contracts they will serve throughout the franchise. An alternative is to provide them with a territory (defined by geographical boundaries) within which they can provide the services. The latter is harder for online businesses, where customers can often change areas depending on where they live or work. As such, one way you might divide up your territory is to provide a map of an area where the franchisee can provide the goods or services to local customers or businesses.<\/p>\n\n\n\n

Franchise Manuals<\/h2>\n\n\n\n

You will also need to create an operations manual for your franchisees. Your franchise operations manual will inform your franchisees how to operate the business and other essential information. You should ensure you have an established operations manual before franchising your online business, as your franchisees will use this throughout their journey as a franchisee. The manual usually includes items such as:<\/p>\n\n\n\n