Are You a Candidate to Franchise Your Business?
You have worked hard to be where you are: in command of a successful and growing business. You may be wondering, “What’s next?”
Would opening one or more units be as successful?
Here are three major factors you have to consider if you want to expand.
- Large capital investment.
- Increased risk.
- Splits your focus and calls for extra time and energy. Depletes employment pool…tougher than ever to find good loyal employees.
What about franchising?
Franchising — licensing others to offer your products or services-is by far a much smarter choice. Here’s why…
- It is not as capital-intensive as branching-out, since the major investment in your business is made by the franchisees.
- Low risk…franchisee buys the opportunity, makes the investment, takes on the risk and will work harder.
- Profitable; franchise agreements if they are executed properly produce continuing income from licensing and royalty fees, marketing, promotion and co-op advertising, product sales, and more.
- Employment problem is the franchisee’s. Owners make better managers.
At this point, ask yourself: “Does my business fit the franchise framework?”
Your business may be franchiseable if you can answer “yes” to these questions:
- Is my business profitable, with a proven record of success, with no challenges or problems that another operator could not surmount?
- Would my business concept have audience appeal in other geographic areas?
- Is my business unique…or, if not, has it one or more marketable distinctions that make it stand out from similar businesses?
- Are the operations and processes of my business repeatable, teachable, and cost-efficient?
“What’s in franchising for me?”
There could be plenty.
- The marketing of your concept to franchisees could provide ongoing capital for the operation or expansion of your core business.
- Franchising eliminates the need to find motivated, capable staff for operating new branches. Instead, the “branches” are franchises, and the motivation is that of the franchisees, whose money and enthusiasm are on the line.
- Franchising lets your business grow not through your efforts alone, but with the dedication and hard work of those with a vested interest in their own success — your franchisees.
- Franchising creates win-win situations through group purchases of supplies, marketing, and services.
“What’s my best move?”
You have two choices:
One, go it alone in developing and marketing your franchise. Two, let an experienced team determine the feasibility of your franchise, and perform all the steps necessary to prepare it, market it, and help your franchisees launch their businesses.
After having read all the steps that must be performed and the hurdles that must be cleared if you are to franchise successfully, we believe you will welcome option two… especially if you select Serpente & Faer as your franchise developers and marketers.