The Process of franchising a business can be a unique experience. The documentation, the sales process, the systems and the mindset has to be a big shift in gears for most entrepreneurs.
The reason that businesses franchise their business has several key elements to it.
1. Many business owners find them getting stuck working IN the business as opposed to ON the business. This happens with too many company owned locations and business units, the owner of the company finds themselves putting out fires continuously in the operations. Franchising gives a way to business owners that allows the organization to leverage a proven business system and puts franchisees in the operating model managing the day to day responsibilities of the business.
2. Franchising allows for the infusion of capital into a growing company without giving up equity to the investors. Franchisees gain from owning a peice of your industry and business without having the control or ownership in the overall brand and organization. It's always a good thing to keep the number of chefs in the kitchen to a minimum! 🙂 As in our client Chopple's case, this is a business model similar to Groupon, which as we all know was recently sold for over $6 billion - instead of someone developing their own company providing this service and investing in the infrastructure and cost to get the business going, they can buy a license that offers an exclusive territory and gives them a peice of the action!
3. It's difficult to manage employees in any business...particularly when they are far away! Franchising puts the honus of managing day to day employees on the franchise operator. This allows the franchisor (YOU) to build the brand, work on strategic initiatives and develop strategy for moving the organization forward....after all, isn't that what you are supposed to be doing!
4. Franchising speeds up the branding process. The more people you get out in the marketplace singing your brand's praises, the faster you are recognized as a brand the quicker you can establish your price points and profit margins.
For more information on how to franchise your business, contact us: 800-610-0292 / [email protected]
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FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.