There are almost 800,000 franchised business locations across the United States. Each one of these businesses is the investment of someone hoping to find financial freedom by being their own boss.
What they also represent are businesses that have become successful enough that the owner was able to replicate their success and package it up for sale. If you own a business, it could be time to consider franchising your business.
Use this guide to determine if your business is prime for franchising.
Can You Replicate Your Business Model?
The main question you need to answer is if you can replicate the success you’ve had with one location. The first step to answering this question is opening a second location under your ownership.
This will tell you if there is enough customer demand and if the business model is replicable. Now you can show that your business doesn’t have one-off success.
Do You Have the Financial Backing?
When you franchise a business, you’re taking on a business partner, but not in the traditional sense. You should know the costs associated with opening a location after opening your first two. Now use those costs to estimate how much you’ll need to come to an agreement and have your new franchise owner open their own location.
- Trademark registration
- Legal fees
- Franchise agreement documents
- Franchise registration
- Accounting fees
You’ll then need to arrange for company materials that will guide your new owner in how to run their own location of your business.
- Operations manual
- Hiring franchise talent
- Marketing your franchise opportunity
Hire the Experts
As you can see, organizing your franchise business can be quite complicated. This is when hiring the experts becomes smart. You could hire a franchise developer that will do everything for you.
The other option is to create your own team of experienced professionals. You’ll need an accounting, legal, and marketing team. The advantage of this strategy is that you can hire the best in each area.
Be sure to do your research and only hire services that are reputable and have experience with franchises.
Your Role Will Change
When you own your own business, you have a certain level of autonomy. You are the boss, and you run your one or two locations with the final say. This changes when you franchise, and you’re no longer in absolute control.
As the franchise owner, are you capable of giving up that control? Think about how cookiecutter your franchise needs to be. Outline the areas where you can give the franchisee more freedom to make their own decisions.
At the same time, are you ready for your role to change into more of a mentor position? You’ll need to guide your new franchise owners by helping them avoid pitfalls and take advantage of opportunities.
Consider Franchising Your Business
If you have a successful business and want to franchise, work your way through this guide. By taking a closer look at yourself and your business, you can determine if franchising your business is the right next step for growth.
The businesses that work best for franchising are those that can be easily replicated, in high demand, and have the financial backing to fund the growth.
Contact us today and let our knowledgeable team help you create an effective marketing campaign for your franchise business.