How to Franchise Your Business
Have you ever thought about franchising your business?
Franchising is one of the most dynamic growth vehicles available. Within the United States alone, franchising is estimated to represent 40 percent of all retail sales which represent hundreds of billions of dollars annually.
What kinds of business can be franchised?
While restaurants are a major sector most people think of as being franchises, franchising also includes healthcare, education, automotive services, home services, finance, staffing, and many other industries.
How do I know if my business can be franchised?
If you think that you might benefit from franchising, the first thing to ask is if your business is, in fact, franchisable.
What three things make up a franchise?
Legally speaking, a franchise is defined by FTC Rule 436 which says that a franchise is a business relationship in which three elements are present.
If you have all three, you have created a franchise – regardless of what you call it.
So, why is franchising so popular?
Well, it solves three basic problems: money, time, and people.
By using other people’s money, you’ll be able to grow your business without the capital or bank financing required to open more company-owned units.
You’ll save tons of time on work the franchisees do – finding sites, hiring people, training staff, and opening the location – enabling even faster growth.
And you know you’ll have the right people, who are highly motivated by their own investments and are in it for the long haul. In fact, studies have shown that franchisees can outperform company managers by up to 30 percent.
Who can help me franchise my business?
If you’re interested in franchising your business, our affiliate company, FranCnsult, LLC has a process that will help you determine if your business model is, in fact, franchisable.
And if it is, we can also help you determine if franchising is really the best course of action for your particular business.
What is the process?
There are 3 steps to developing and implementing a successful franchise concept: