Franchise Your Business

Take the Next Step Toward Your Ideal Future

Franchising your business has many benefits.

Did you know that all franchises were once independently-owned businesses? You might be at the point where you have built a successful business from the ground up and are considering franchising.

The first question you should ask: Is your business “franchisable”?

Here are some initial assessment questions to help you find the answer:

Is your business model replicable?
Is there a clear differentiation from competitors in the marketplace?
Is the business profitable? There must be a proven return on investment.
Are there state licensing requirements that may impose a barrier to entry?
Do you have the capital reserves to implement a Franchise Program? You will need franchise sales personnel, legal counsel, national and local marketing support, operations manuals, training resources, business coaches, and technology. The amount needed will vary depending on the expansion plans.

(Generally, you’ll need between $50K – $250K.)

Once you’ve determined that you do indeed have a franchisable company, it’s time to identify the right franchising strategy for your business.

When you decide to franchise your business, you will essentially award investors with the rights to sell your products or services through an approved territory. An initial franchise fee is paid to you (the franchisor) by the investor (the franchisee) for training on how to operate the business, guidance on licensing and site selection if required, in return for the rights to operate a business under the franchise trademark. Ongoing monthly royalties are then paid to the franchisor for continuous support and training for the life of the franchisee’s business.

While franchising may be a great path for growth, it is a long-term investment and could be used with a combination of other distribution means. It is not uncommon for franchise companies to grow with 1 or more of the following channels, in addition to selling franchises:

Company-Owned Locations

Licensing or Business Opportunities

Distributorships

Agency Relationships

The initial development of a franchise program requires an investment of both time and funds. However, the cost of professional advisors to help you properly develop your franchise is typically less than the cost of opening one additional company-owned location. Hiring a credible and experienced franchise consultant will help you through the process.

Don’t wait another day to learn about franchising your business.

Take control of your future and define your journey today!