How do I Start an Internet Franchise?

Article Details
  • Written By: Max Meinhof
  • Edited By: J.T. Gale
  • Last Modified Date: 28 August 2019
  • Copyright Protected:
    Conjecture Corporation
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Successful franchising typically depends on selecting the right parent company for a business. This is especially true in the world of Internet franchising where it can be easy to fall prey to a scam. Still, there are reputable brands that can provide benefits to franchisees. To start an Internet franchise, you typically will need to select a business, draft articles of incorporation, create a limited liability corporation, set up a bank account, and begin marketing and selling your products.

Generally, the first thing you need to do is decide what type of Internet business you would like to franchise. Many affiliate marketing companies will offer franchise opportunities for vendors who specialize in a certain niche. For example, an affiliate marketer or vendor that specializes in shampoo may want to branch out to other hair-care products. The vendor will then look for a potential franchisee that is passionate about hair care and has the business sense to build an Internet franchise. It can be important to contact as many different vendors as possible, but be sure that you select a vendor that is reliable, viable, and offers support and infrastructure.

Once you have settled on a vendor, you typically will need to file your articles of incorporation. It typically is prudent to start a limited liability corporation, as these provide adequate protection for franchisees. You may need to hire an attorney to draw up these papers and file them with the appropriate jurisdiction.


Next, you might want to consider setting up a business bank account. You can then use this bank account for all business-related transactions. It can be important to keep personal and business funds separate. Running an Internet franchise often requires an online payment processor to facilitate transactions.

Generally, you can then begin selling your product online. Ask your franchisor to help you assemble all the pieces you need to start your business. You most likely will need to build a basic website, although some Internet franchisees operate exclusively through e-mail marketing, social networking promotions, and multi-level marketing. It can be a good idea to market your product on social networking sites as well. If you chose a franchisor with a recognizable brand name, then you could already have a competitive advantage over other online vendors.

You could use the brand name to your advantage by launching a social networking campaign using the brand name. It can be important for you to make sure that you are allowed to utilize the franchisor’s brand name. Do not promote your products using a different brand name unless you have an explicit franchise agreement with the company that operates that brand. Building a successful Internet franchise typically requires forming strong relationships with vendors and consumers.

Next, you typically need to build a sales strategy that will keep overhead costs low. This can help your business thrive over the long haul. Generally, it is better to build an Internet franchise that brings in a steady stream of income than it is to build a business model that is inconsistent.

Finally, make sure that you keep tabs of your accounting. You may need to hire an accountant to take care of your books. Either way, it is important that you keep detailed records regarding business transactions. You typically should select an accountant that is familiar with doing books for an Internet franchise or online business.



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