How to Franchise My Business- 7 Steps to Success

Many entrepreneurs think that franchising is a costly affair and it is not meant for small businesses. Do you think in the same way? Then, you should change your concept because it is far from the reality. Franchising helps a business to grow rapidly. In this article, we will be focusing on seven steps that can help your business reap benefits from franchising.

1. Capital

Capital is the base of any business. Sometimes, it is the only obstacle for the small businesses. Sometimes, the growth goals of the companies outstrip their ability of funding. Franchising is an alternative backup of capital acquisition. It offers some sound benefits. One of these benefits is the fact that franchising allows the businesses to expand without the fear of debt or the cost of equity. Whenever you are thinking “how to franchise my business”, you must consider the financial issues. You should not forget that financial support is the most desired thing for a small business.

2. Speed of Growth

Every business owner is scared of the fact if someone else beats him with his own concept. This fear has valid grounds. Opening a single unit takes time. Many entrepreneurs have realized that franchising is the only way of gaining the position of the market leader before the opponents encroach on their space as the franchisees look after most of these responsibilities. Franchising enables an organization to compete with the larger companies so that they can saturate the market before the bigwigs can respond.

3. Staffing Leverage

Staffing leverage is an issue that compels you to think, “I should franchise my business”. Franchising enables the franchisors to operate effectively even with a leaner organization. The franchisees will deal with many of the responsibilities that otherwise would be shouldered by your corporate home office. Franchising your business will reduce your staffing responsibilities and you will be able to focus on other important issues related to the growth and development of your business.

4. Ease of Supervision

If you think from a marginal perspective, you will be able to find out that the franchisees offer a number of benefits. For instance, you will not be responsible for day-to-day affairs of individual franchise units. If a shift leader or one of the crewmembers is calling in sick in the midnight, it is not your call. Your franchisees are responsible for dealing with this. The franchisees will find a replacement or manage the shift. However, these adjustments won’t affect your business and financial returns. 

5. Enhanced Profitability

The staffing advantage and flexible supervision enable the franchises to run the business successfully in a profitable manner. As the franchisors can rely on the franchisees to undertake the location selection, lease negotiation, local market, recruitment, payroll, training, and other important functions, your organization will become much leaner. In this way, your organization can gain more profit. Therefore, whenever you are thinking “how to franchise my business”, you should consider the matter of profitability.

6. Energized Valuations

What helps you improve the overall valuation of your business? Many things can help you boost the valuations such as rapid growth, increased profitability, and organizational advantages etc. Once, you have successfully established yourself as a successful franchisor, you will be able to introduce a scalable growth model to reap multiple advantages.

7. Penetration of secondary and Tertiary Markets

 The franchisees should be able to enhance the unit-level financial performance that has some heavy implications. A qualified franchisee will generate higher revenues in comparison to a manager in the same locations. 

A Final Takeaway

Apart from this, your franchisee will keep track of expenses. In most of the cases, the franchisees have a cost structure that can differ from your cost structure. He or she can operate a unit that is profitable even after accounting for the royalties the franchisee must pay you. It will enable the franchisors like you to consider the markets in which corporate returns are expected to be marginal. Franchisees can operate successfully even in the aggressive markets that might not be high on your priority list.

To explore more about franchising, get in touch with the Franchise Institute.

Top 5 reasons to avail franchise advice

There cannot be any denial of the fact that internet is a huge repository of information. Hardly a topic in the face of this planet that does not have some relevant information listing on the internet, place a search query in Google and it will give you more than million suggestions in less than a second. Let us assume that you are giving serious thoughts on franchising and making plans to launch your business with this model. In this endeavor, you may think that internet is the solo instrument, which can give you relevant information to locate a profitable franchise. You need to understand that internet can be a great place for shopping; but when it comes to recruiting a franchise the loads of information that the web will provide can simply frustrate and confuse you. Hence, the internet is not the ideal place to initiate a comprehensive franchise research. 

In contemporary times, franchisee seekers tend to run out of ideas when it comes to initiating a self-sponsored thorough franchise investigation. Financial investments are not the only areas of concern in this process.  Hence, if you seek franchise advice from an expert consultant the tedious process could be simplified a lot reliving you from all the aggravation and headaches mentioned above.   

You may be wondering what is the role of franchise consultant and how could they benefit you. Simply put forward a franchise consultant is a recruiter for franchise industry and a dependable information repository of profitable business opportunities. With efficient methods of quality checks and sustainability analysis, a franchise consultant can help you to cash in profitable business opportunities.  The list of benefits that you may receive from working alongside a franchise consultant could be elongated but for a comprehensive jest, this writing presents to you five of them:

As an aspiring franchisee, the consulting service is free for you. The franchisor is responsible for referring a qualified individual on professional and financial grounds worthy of a coveted franchise deal.

Seeking professional advice from a capable consultant takes you miles ahead in successfully franchising a business. Be sure of being presented with profitable and sustainable franchising options while the catalog of options gets update periodically.

You will get full assistance in the process of designing a personal and professional profile. A capable consultant pinpoints the perfect opportunity for you based on your interests, competencies, background, and experience.

The consultant acts as a mediator between the franchisor and franchisee. When you express interest in an opportunity that captures your imagination the consultant will arrange for a formal meeting with the franchisor. You can expect to bag in a favorable deal as the consultant has already convinced the franchisor of your capabilities.

The consultant will assume the responsibility of educating you on investment options and types of ownership. Ignorance looms large as franchise seekers may not have a solid understanding of the costs involved, types of franchise models, and their investment requirements.  You can get valuable insights on financing options that were never considered before.    

From this discussion, you may have understood that all the stakeholders in this fabulous business model namely the franchisee, franchisor, and the consultant are mutually benefitted from each other. If you are new to this business, model and do not have the knowledge to embark on this journey with full confidence then risking it on individual efforts may not be the right way to go about it. Since the consulting service comes free of cost there cannot be a reason enough to indicate an attitude of indifference towards it. You can be sure that the franchise consultant will be more than happy to help you.