4 Great Reasons Why Franchise Model Can Work for You

As a business owner, you likely spend plenty of time thinking and dreaming of new ways to innovate, expand, grow, or franchise your business. If you are restless and eager for new opportunities, new ways to reach customers, and new ways to adapt to your changing industries, you may want to consider changing the whole structure.

Enter the Franchise Model

When you franchise your business, you create an easy-to-replicate business model that has proven successful, allowing you to scale quickly and maximize profits. The most successful franchises are those that can reach that same level of success in multiple locations and markets. It leads to exponential growth and more freedom for Franchisors that establish the framework for scalable operations and management.

The franchise model has proven successful across a wide range of industries, as it provides a proven process for many businesses to follow. Here are 4 great reasons why the franchise model may be the perfect way for you to expand your business.

Reason 1: You Create Brand Loyalty

When you franchise your already-successful business, you introduce your brand into new markets. Consumer behaviour indicates that people gravitate towards stable, trustworthy brands and established reputations. When you franchise your business, you gain a wider presence and target multiple audiences, which provides more exposure and opportunity for the consumer to get to know you.

Brand awareness creates loyalty and trust. It keeps people coming back and also entices new customers to feel comfortable giving your business a try. Once you establish that trust, you can create long-lasting relationships in the communities you serve.

Reason 2: You Take on Limited Risks and Liability 

You’ve likely spent countless hours and tireless nights working to grow your business from top to bottom. You pour your heart, soul, and money into your venture. When you franchise your business, you can remove some of the risks from the expansion process. 

Franchisors rely on investments from franchisees interested in becoming a part of the team. You begin to rely on the capital from these individuals, which removes risk and liability from the growth process. 

Instead of fronting your own capital, you can instead invest your time in honing your business model and providing the best training and support possible so your franchisees can walk with you down the path towards success. This paves the way for scalable growth with much less risk coming out of your own pocket.

Reason 3: You Can Accelerate Your Growth

If you believe that your business can be successfully replicated and introduced to new markets, franchising may just be the perfect model to expand. Not only does this allow you to open multiple stores simultaneously without concern about the day-to-day operations, but it gives you more revenue streams to reach higher profitability. 

In fact, the American franchise market is expected to grow at a rate of 3.5 per cent this year alone. By focusing on replicable practices, you can accelerate your growth and exponentially increase your earning potential.

When you franchise your business, you initially need to dedicate time to the creation of resources useful for your franchisees. Creating the infrastructure to recruit, train, and support means that franchisees are able to scale and grow much faster. 

Reason 4: You Gain More Freedom

Many business owners gravitate towards the franchise model so they can let go of some of the control over daily operations and focus on the larger picture. Instead of working inside the business every day, they can enjoy working on creating a business model that others can run. 

Franchisees manage their own employees, allowing the franchisor to conciliate their employees and streamline the corporate management process. You can trust that the structure of all day-to-day operations can be handled confidently by your franchisees. By creating a model that is proven successful and an easy-to-replicate operational strategy, you hand franchisees the golden ticket to success with your business. 

Conclusion

Growing your business may present challenges and hurdles to overcome, but when you use the franchise model, the framework is laid out for you. The success of the franchise industry has remained steadfast throughout the years, and it continues to be a beneficial model for business expansion.

If you are ready to franchise your business, trust our franchise experts to help you with each step of the journey, contact us today.

Grow Your Franchise With These 7 Expert Tips

Franchising your business offers many benefits, and the opportunity for rapid growth is one of the front runners. With the ability to scale and expand your business quickly without the need for control over every detail, you can franchise your business and grow into a successful powerhouse. As you expand your business into multiple communities, you recruit, educate, and trust franchisees to become a large part of your expansion journey. 

The franchise model provides the framework to grow your business, as it details an almost formulaic, but flexible structure for expansion. As you adapt your business to the franchise model, you want to follow these tips from our expert franchise consultants to create a truly successful, valuable experience for your customers, clients, and franchisees. 

  1. Establish a Clear Business Model
  2. Create Quality Resources
  3. Focus on Education
  4. Listen to Your Franchisees
  5. Create an Alluring, Valuable Opportunity
  6. Stay Consistent with Your Brand
  7. Work with Expert Franchise Consultants

1. Establish a Clear Business Model 

First things first, you need a clear vision with a proven business model. Your business model will frame the way franchisees will tackle all aspects of their business, from operations to management. Before you franchise your business, you should already be successful. Once you choose to franchise, you need to adapt your already-proven business practices into a scalable, easy-to-replicate structure that anyone can follow. 

Consider ways to innovate your industry and carve a reputable and easily memorable niche for your business as it grows. Hone in on what you do best to offer value to both your franchisees and customers.

2. Create Quality Resources

Setting your franchisees on a path toward success is critical to your overall success as a franchisor. Take the time to consider important resources that you need to train and educate your recruits and their employees. As a business owner ready to franchise, you already know the ins and outs of your business, but it is up to you to pass on this knowledge to allow others to follow you down that path. 

Creating resources is an integral part of the collaborative process between franchisees and franchisors, so it is important to work, and possibly rework, these resources to motivate and inform others. Consider creating documents to help standardize the process as your business grows to multiple locations, such as:

When you create resources, you give answers to many of the questions that franchisees may have as they go to open their own locations. Not only will this give them insight into your solutions, but it will also be a more efficient use of your time.

3. Focus on Education 

Your franchise opportunity is appealing because it removes some of the risk of business ownership with an established, proven model. Franchisees jump on board because they are excited to learn how to take what you have started and create their own successes from it. Because of this value, training should be a primary focus when it comes to your franchisees. 

Prepare franchisees by offering valuable, comprehensive training programs, holding ongoing workshops to keep everyone updated, and performing routine check-ins to ensure they are on the right track. When you franchise your business, you may give up some control over each detail of your business, but you take on a new, instructional role.

4: Listen to Your Franchisees

When you take on the role of a franchisor, you may take a backseat to deal with customers in order to meet the new demands your franchisees require. This is a natural part of the process, as you are making the transition from working in the business to working on the business. Listening to your franchisees gives you a chance to provide them with the tools and resources they need to then deliver and maintain the original customer focus. Take the time to understand their needs so that you can all succeed together.

5. Create an Alluring, Valuable Opportunity

To generate interest in your franchise, you need to create a business that offers value to your investors. When you ask others to invest their hard-earned money into your business, you need to take into account how you can support them and provide unique value to their lives. 

Creating a reputable business is just the first step to adding value to the opportunity you offer. You should also showcase how you can support them through their journey, create a business mission to align with and explore ways to innovate and exceed expectations in your industry. 

To offer value, consider offering competitive and fair pricing to start their franchise journey. Talk with franchisees to offer support and assistance with practices like software and inventory. When you collaborate with your franchisees, you can understand their needs and provide them with direct support with what they truly need - not just in the beginning, but anytime throughout their journey.

6. Stay Consistent with Your Brand

Marketing is another large aspect of your franchise's success. Creating brand continuity is essential in bringing customers back to your locations, no matter where they are. When people see your brand, they should know to expect the best. To create brand continuity, you will need to adhere to high standards of excellence and quality assurance when building your franchise. Train recruits to understand the expectations of your products and services to achieve this consistency. 

Customers love supporting franchises because they know what to expect. They have been here before, had a great experience, and expect that same treatment at their next visit. Creating loyal customers depends on consistency and reputation. Although you want your franchisees to feel comfortable trying new things and spreading the word in their local community in their own ways, you need to set clear expectations on the quality and service you expect.

7. Work with Expert Franchise Consultants

Once you have a successful business, you may be ready to expand your business with franchising. Creating resources, recruiting the right people to join your venture, and establishing a consistent brand within your industry can all be more difficult when you start to replicate your business in multiple locations. To work through any difficulties associated with franchising your business, you may want to work with franchise consultants. 

Conclusion

Our team has extensive experience building large brands, creating scalable business models, and recruiting and training franchisees to help you grow and franchise your business. Consultants have the answers to those questions that you may be struggling with as you learn the franchising framework.

Let the FMS Franchise help you through every step of your franchising journey! To learn more about our experience and services, get in touch.

Top 5 Trending Industries For Franchising Today

Here are the top 5 emerging and trending industries for franchising today in the USA.

  1. Health and Beauty Industry
  2. Food and Beverage Industry
  3. Services Industry
  4. Education Industry
  5. Home-Based Industry

1. Health and Beauty Industry

What is franchise development when talking in terms of wellness? Many people are asking that very same question as the market for health and beauty brands has grown in recent years. There is massive consumer demand across many categories in this specific segment. This includes hair care, make-up, massage, acupuncture, fitness, skincare, and lash extensions. The branding and digital marketing opportunities appear to be endless in this segment. We’ve especially seen significant growth in franchising gym locations around the world.

2. Food and Beverage Industry

Any franchise consultant will tell you that food and beverage is often a safe business bet. It will likely be one of the world’s leading market segments. As they say, people gotta eat! Some of the most iconic brands to ever franchise come from this industry, like McDonald’s or Subway. Their global presence continues to affect the franchise business model today. Franchising has proven to be one of the most effective ways for restaurants to efficiently and effectively grow their brand

3. Services Industry

FMS Franchise is a top franchise consulting company, especially within the services industry. In recent years, services have become one of the fastest-growing market segments for franchising. It can encompass quite a wide range of models as well, from landscaping to payroll management. As a leading franchise development company, we always encourage a service business to get in on this action. They have high-profit margins and a low overhead, which decreases the general risk involved and makes it more accessible to the average entrepreneur to enter into new markets. 

4. Education Industry

Investing in the future of our society is and always will be an essential endeavour. Children's education in this modern day and age is more important than ever. It’s proven time and time again to be one of the most consistently fast-paced franchise market segments around. People will always want to make a difference in the learning lives of little ones, regardless of their economic state. Creative and high-margin models can benefit everyone when working to franchise within the education industry. 

5. Home-Based Industry

The homes based franchising market is an excellent vehicle for growth. It has become a stable segment over the past decade, and the pandemic pushed its potential even further.

Improving the space you live in is the ideal investment for the current generation of remote workers. Starting a business from the comfort of your own home also offers low overhead and a great potential for work-life balance

Takeaway

At FMS, we’ve seen many home-based franchise models develop and scale successfully, and the timing today has never been better. If you would like to break into the franchise market with any of these trending industries, we recommend learning more by getting in touch.

You’re in Good Company with FMS Franchise

FMS Franchise (FMS) is a strategic partner for new and existing franchise businesses. Through the creation, launch and execution of effective growth strategies, FMS Franchise helps ensure your success and legacy.

As a franchise consulting company developed by entrepreneurs and for entrepreneurs, we offer a range of services that provide marketing and sales support to FMS clients.

Whether you are looking to franchise your own business or sell your franchise business, our team is here to assist you. Offering far more than simply buying and selling, FMS Franchise takes an active role in research, conversion, metric tracking and more, giving you everything you need from one strategic partner.

With our focus to provide you with customized and effective franchise development services tailored to your business needs, there’s no need to go elsewhere.

FMS is Proud of What We Do

The clients we serve and the success we’ve helped others achieve. The numbers speak for themselves:

You’re in good company with FMS Franchise. The processes of developing, implementing and marketing a franchise system require expertise - one that comes with years of experience from people who are in the business of franchising.

Franchising is a tool to grow your business, giving you the ability to expand into new areas and achieve massive market penetration in a short period of time. By franchising your business, you can bring in investors without giving up control of the organization's direction or decision-making ability.

Franchising enables a company to swiftly and successfully create a brand and a sustainable competitive advantage.

Growing your business is made easier with the support and guidance of FMS, as you can unlock much more potential than you can with just one location. As you expand, you will increase your chances of becoming a reputable leader in your industry.

With the help of our marketing strategies and channels, we promote quick expansion and business growth. Our team is trained to assist with recruiting and training resources to jumpstart your franchise and lead to sustainable practices over time.

Working with FMS Franchise, you have consultants who have real experience in the field of franchise business development and we are the only full-service franchise consulting agency offering sales and marketing support to our clients, giving you the peace of mind that your business is in the best hands.

5 Key Factors of Successful Franchise Development

When any business owner with a growing business thinks about expanding into new markets, one of the avenues to consider is franchising. So, what is franchise development? The process of franchise development is a proven avenue for turning a successful business into a successful chain both regionally and globally.

There are many factors that go into the franchise development strategy. Imagine if you will, a complicated recipe at the heart of a strong recurring business. This recipe, when done correctly and with proven ingredients, will feature all the components necessary to make it repeatable and reproducible by others.

FMS's expert franchise consultants have identified these 5 key factors of successful franchise development:

  1. Drafting a Franchise Business Development Plan
  2. Completing the Franchise Legal Process
  3. Create Operations Manual & Training System
  4. Marketing In The Franchise Development Process
  5. Work With a Reputable Franchise Development Company

1. Drafting a Franchise Business Development Plan

Laying out your franchise business development plan and growth strategy is a very important process. This will help you and your investors to be able to visualize the direction that you want to take with the franchise. This is also something that you will be able to use when you are in negotiations with them so that you will already have all the statistics and information that they need.

A good overview of franchise strategy development should include the products and services that will be provided. The description of the buyer should include the details such as their income bracket, location and demographic details etc.

A detailed financial analysis will enable a business owner to get an idea about the feasibility of his business expansion program, and a franchisor should also prepare a detailed analysis to target potential franchisees in specific regions.

2. Completing the Franchise Legal Process

The second factor of the franchise process involves completing the legal processes necessary before filing for state registration with designated states. Franchising an existing business or starting a new business through franchising can take as little as a few months or as long as several years to complete for newly developed businesses. In either case, legalities must be followed. 

These legalities fall into place in multiple states, and it takes careful planning to address each requirement with care. Therefore, without any exception, you need to find yourself a professional who understands how to create your Franchise Disclosure Document (FDD) based on the standards set forth by the Federal Trade Commission.

This is not something that should be done solely by someone with experience in franchising, but also an attorney who is familiar with the UCC Code, FTC regulations and requirements, and writing FDDs and FAs.

The franchise legal process is essential in a successful franchise system. A strong foundation will lead to a strong franchise network with potentially solid revenue and profits for years to come. As with most things in life, it is all about being prepared for what is ahead, making sound decisions and staying organized.

3. Create Operations Manual & Training System

The Franchise Operations Manual and Training System​ provides a comprehensive way to create documentation and is necessary for training on a franchise level that is easily repeatable. While most franchisors develop their own operations manuals, many don't take the time or resources to make sure they are done properly.

Solid training is essential for franchisees to know about business operations. The franchisor is legally bound to create a well-documented guide to ensure comprehensive franchisee training before the new franchise commences business. The franchisor also has to provide ongoing support and refresher training to ensure the chain has standardized products and services offered.  

Documentation, training, and operations manuals are necessary for the successful growth of any business that is franchising. If steps are not well documented, you can often run into problems that may hinder the development and operation of your franchise system.

4. Marketing In The Franchise Development Process

Marketing is an intangible element of franchising and is primarily based on your ability to sell the concept of franchising to franchise prospects, once the franchise process is complete.

The use of collateral materials including franchise websites, brochures, franchise presentations and flyers should be carefully crafted to pique the interest of potential franchise buyers and make them aware of all the advantages associated with owning a franchise business that offers products or services which are sold under the brand name of your company.

These materials will provide information on the number of units already in operation, locations where units can be found and contact information for those interested in owning one of these franchises.

5. Work With A Reputable Franchise Development Company

Working with a reputable franchise development company can make all the difference when learning how to franchise your business.  Franchise Marketing Systems has helped hundreds of companies start and develop their business models into franchises. 

The process can be intimidating, and FMS is here to help. We have put together a range of franchise services to offer our clients the best chance for success – whether you’re looking to build your own franchise or sell your franchise business. 

Call Franchise Marketing Systems today and find out what an experienced franchise consulting group can do for your business.

5 Key Factors of Successful Franchise Development
5 Key Factors of Successful Franchise Development

6 Best Reasons To Franchise Your Business

Are you a business owner looking for business growth opportunities? Have you thought about franchising but don't really know the Whats and Hows? Or rather, are you wondering why you should franchise your business in the first place?

If you answered “yes” to the questions above, you’re in the right place!

Franchising a business can seem like a daunting task, especially if you’re just dipping your toes in these waters. But what is franchising?

Franchising, simply put, is the act of selling the rights to another party for opening a new unit of your business (a shop, restaurant, spa, realty service provider, dog grooming service etc.). In turn, that party follows your already established business model and pays you a percentage of the gross sales as royalty.

First, Why Should You Franchise My Business?

If you want to expand your business to new areas, franchising will provide you with an opportunity to do just that using other people’s money and resources. There’s obviously a lot more to the benefits franchising your business brings. Let’s take a look at some of the major ones.

Now, let’s explore the 6 best reasons to franchise your business you should consider;

  1. Motivated Partners
  2. Increased Revenue
  3. Rapid Business Growth
  4. Boosted Business Value
  5. Better Market Coverage
  6. Higher Success-to-Risk Ratio

1. Motivated Partners

When you franchise, you get a partner that has invested a considerable amount of money into getting the rights to your brand as well as physically setting up the franchise. They are also ready to invest their time and effort into making the franchise a success. This gets them to work hard and take ownership of the profits and the losses and, in the process make sure you benefit as well.

2. Increased Revenue

As a franchisor, you will be tapping into an additional source of income. Each new franchise will add to your income by means of franchise fees, royalties, and markups on supplies. Additionally, you can negotiate vendor rebates when your franchisees purchase from the same vendors you do. Purchasing additional quantities from the same vendors also allows you to negotiate better prices, further increasing your net revenue.

3. Rapid Business Growth

This point extends from the one about increased revenue above. The revenue generated with every additional franchise - with little to no capital investment on your part - can be invested in your business’s progressive growth and development.

You can also grant rights to the franchisee(s) to own multiple franchises simultaneously.

4. Boosted Business Value

Each of your franchises is a symbol of your product or brand’s quality and authenticity. The more franchises there are, the more visibility they will get. This will generate new business in the form of new customers which will get new potential franchisees to reach out to you.

This will result in more franchises and the snowball effect will just keep on bringing on greater success and potentially more profits.

5. Better Market Coverage

Franchising provides the perfect opportunity for you to increase your market penetration. It makes this possible by allowing you to reach new locations and markets, effectively and rapidly. This in turn allows you to access larger demographics, effectively increasing the value your business generates. Additionally, there’s a chance that the franchisee themselves are quite well-established in their community even before they take up one of your franchises. This further lends credibility to the new franchise and thus your business.

6. Higher Success-to-Risk Ratio 

You shift a major portion of the risks associated with a new franchise over to the franchisee along with the capital cost that they are already bearing. Additionally, the franchisee also takes responsibility for the legal side of things for their franchise such as signing leases and employee contracts.

Research and experience have also shown that the chances of success associated with a new franchise of an existing brand are much higher than that of new, solo businesses.

Conclusion

As a franchisor, you have access to an additional revenue stream each time you engage in the establishment of a new franchise. Since your franchisees are investing their own capital and time, they will be working that much harder to ensure that the new outlet is a success. Increased revenue, greater business growth, and better market penetration then come as a natural progression of events.

Having the right franchise development team at your disposal can make this entire process much more streamlined for you. This is where FMS comes into the picture! We have an expert team of franchising and marketing specialists that will work with you and address your franchising needs from A to Z.

Get in touch to start your franchise today!

Franchise Your Business – Fortune Favors the Bold

It struck me the other day when I was speaking with someone considering investing in multiple units of a Papa John’s Franchise how much of success in entrepreneurship depends on taking a calculated risk.  In interviewing this person, he was considering multiple unit investments in the Papa John’s franchise system the easy answer would always be “no” because it’s safer to do what you’ve always done and avoid the unknown. 

So with that in mind, I began researching Papa John’s and John Schnatter, the company’s founder came up.  Mr. Schnatter has had his fair share of bad PR and rough patches over the last year, so plenty of news came to the forefront.  He has since stepped down as CEO of the company and is transitioning to other things, but his net worth popped up front on the searches.  As of the date of this article, Papa John’s founder is worth an estimated $1.1 Billion.

That was when it hit me.  Here is this guy who started a business in 1984 selling pizzas with $1,600 to his name and by 2019, was able to become a billionaire.  How many other pizza entrepreneurs are there out there who make a better pizza than John does and never were willing to take the risk and grow their brand.  They were in effect bound to the inside of their four walls and maybe never would have achieved the levels of success that Mr. Schnatter has, but could have been something much bigger than they were.  So much of doing big things can be tied to someone just being bold and taking a risk.

With the success of the Papa John’s franchise, I began looking into other franchise success stories and brands that took a risk to scale their model and do something big.  Jimmy John’s Founder, James Liautaud came up next in my search.  Here again was an entrepreneur who started a business in 1982 with $25,000 and in 1994, franchised the sandwich brand to grow faster and more efficiently.  The brand had obvious success and provided Mr. Liautaud with incredible wealth – an estimated $1.8 billion by 2019.  Again, a case where how many other sandwich shop operators are out there who have something great, but were never willing to take the risk, but Jimmy did and won big.

Next on the list were several in industries outside of food service that franchised their brand and scaled their business model.  Mr. James DeVoe, the founder of JD Byrider, a used car sales brand started his business in 1989 and franchised the model to 125 locations and in 2011, was able to sell the company for $115 million to a private equity group, again I start thinking about how many used car entrepreneurs who just never pushed outside of their single lot or operation and possibly missed an opportunity.  Then there is the GNC franchise in the supplement industry, a business that was started a long time ago in 1935 by David Shakarian, as a single store in Pittsburgh and grew to 8,400 stores at its peak and in 1999, sold to a private equity group for $2.5 Billion.  Yet another example of an entrepreneur who took a risk, scaled their brand and was able to take an entire market segment through franchised expansion.

Ultimately, the risk associated with doing something different is always scary and when you are considering “Change”, it can be paralyzing for many business owners.  I’m not saying that franchising or conquering the world is for everyone, but that it’s worth considering that you might have something bigger than a single operation and with the right vehicle, there could be a lot of opportunities.  As the saying goes, “Fortune Favors the Bold”, it couldn’t be more relevant in entrepreneurship and when considering where to take your business.

Contact us for more information on how to franchise your brand and discuss whether your business could have potential as a franchise system.

Benefits of Franchising Your Business

The benefits of franchising your business can be extensive, but when it comes down to it, the key benefit is a transition from operational focus to strategic.

As an entrepreneur continues to grow their business, managing all aspects of the day-to-day business effectively quickly becomes a challenge.  Multiple locations of any enterprise involve many moving parts, all of which need to be monitored and maintained in order to sufficiently and successfully exercise a typical day of business. 

Elements such as staffing, customer service, sales and brand continuity all become more and more difficult as   Growth can lead to unsustainability if not acted on properly.  Business owners frequently wish for expansion but fear their ability to control each operational process will become muddled or lost altogether. 

And, in most cases, they are probably right.  Many times, business owners who grow through company-owned and managed locations run into obstacles that hinder growth as the business expands beyond what they can manage directly.   

It is at this crossroad in a business’ growth that franchising becomes a viable expansion option.  Franchising your business allows you to multiply a brand’s footprint, but with added manpower and capital to scale the growth.  The value of having independent business owners who have money invested and their direct, onsite focus is enormous and the performance of franchise-owned and operated businesses almost always outperforms company-owned locations of the same business model.

Franchising your business can also reflect positively to the business’ image, as the public sees this new business as locally owned and operated and if the franchise owner is the right person they are connected to the community and know how to connect to consumers in the area. 

People are naturally attracted to familiarity, and a process that is consistent regardless of the location in which it is being executed will lead to successful results.  Franchising allows a brand to grow and duplicate at several levels.  At the national or global level, all franchisees and corporate units contribute to a marketing fund that is used to promote the brand and build awareness for the company. 

At the regional level, franchisees work together through regional cooperatives where advertising dollars are spent in a region to build local awareness and leverage economies of scale in advertising and promotion spending.  At the local level, franchisees are required to spend dollars on promoting and advertising the business in their immediate market.  The combination of the advertising platforms maximizes the opportunity for brand development and makes franchising a win-win relationship between franchisor and franchisee.  

Franchising your business allows entrepreneurs to attract other like-minded people with a thirst for owning their own business, but with the desire to have guidance and support along the way. 

Many do not want to endure the time, effort and risks inherent in starting a business from the ground up.  By purchasing and joining a franchise, franchisees are able to reduce stress and increase the chances of success.  Franchising your business will naturally pool resources together – collaboration amongst franchisees leads to sharing of ideas and proper quality checking of each system and process. 

A business owner benefits from having easy access to criticism in an appropriate and relevant manner.

The entrepreneur who is able to make this transition stops focusing on the small items inherent in managing a business and begins to focus on what strategic aspects will help drive the growth of the brand and scale the business.  The funny thing about this transition is that people who are stuck in an operational mindset many times are busier and work harder than those who are strategic-minded. 

Franchising is a big picture initiative where the product becomes the business model itself and with each transaction, the brand grows exponentially. 

For more information on the benefits of Franchising Your Business, Contact us:

[email protected]

Are You Ready to Franchise Your Business? 5 Questions to Ask

Franchise Your Business
Are You Ready to Franchise Your Business?

You have a business and want to expand.  There are a variety of ways to expand the number of locations, company-owned, bringing on partners, venture capital or franchising. Many businesses decide that franchising could be an extremely effective way to develop a brand and business model without the intensive capital or staffing needs of other channels. But how do you know your business is ready to franchise and how do you know when is the right time to franchise your business?

Here are some questions to ask if you’re seriously considering whether to franchise your business or not:

  1. Is your business currently successful and how do you define that success?
  2. Why is your business successful?
  3. Can you afford to franchise?
  4. Can you sell your franchise business concept to entrepreneurs?
  5. Are you ready to provide the systems to franchise owners for long-term success?

1. Is your business currently successful and how do you define that success?

If you want to entice entrepreneurs to invest in your brand, it must have a track record of solid revenue growth, dependable profit margins, and a strong customer/client base. Your business may be ready to franchise if the business has credibility based on current success.

2. Why is your business successful?

Can that success be achieved in other locations in volume? The success must be due to factors that can be replicated and easily taught to others.

For example, if your successful concept is based on a service that’s in high demand and isn’t widely available, your business may be ready to franchise if prospective owners can learn how to run your business model.

But if the reason your business is successful is due to being located in one hot market or having unique skills that make you best suited for success, you may not be able to replicate that success.

3. Can you afford to franchise?

You may be ready to franchise your business if you have the capital to put the necessary franchise infrastructure in place. You’ll need to hire attorneys to provide legal support and all the necessary documentation. You’ll need to set up training, operations, and marketing systems. You’ll need to cover the cost of state registration fees.

You may hire franchise consultants. The cost to the franchise can range from $15,000 to $100,00 depending on the business.

4. Can you sell your franchise business concept to entrepreneurs?

How will you convince anyone to spend the money necessary to open a location for your brand?

You’ll need to market your business to prospective owners and sell them your concept. You may be ready to franchise if you can make the argument that between the franchise systems you’ve put into place and the prospect of customer/client demand and revenue, your business will be a success for anyone willing to take a risk.

5. Are you ready to provide the systems to franchise owners for long-term success?

If you’re ready to franchise your business, your franchise plan must include systems for training, operations, administration, and marketing. If your business requires equipment, you need to find ways to minimize those hard costs for owners.

You may need to offer assistance with lease agreements or attain the most desired locations. Your business needs to be turnkey for every franchise owner. You may be ready to franchise your business if you have a solid plan for franchise owner support.

For more information on when you should franchise your business, contact us for a free franchise consultation.

How to Franchise Your Business Well

Why is it that some franchises seem to expand so quickly and others can’t seem to get off the ground?  In the franchise development world, you have the opportunity to see some “out of this world” ideas and business concepts.  The really exciting part of working in franchising is that we are able to work closely with entrepreneurs who have more vision, insight and ability to innovate than anyone on the planet.

We are confident that what drives the global economy is the small business owner and entrepreneur who is looking for ways to create, constantly looking for ways to build and always taking a positive spin on how to approach opportunities.  Franchising is a nice way to keep your finger on the pulse of the global small business economy and to see what, who and how people are doing business. 

In most cases, what happens in the small business and franchise markets is what is coming to the broader market.  On one hand, the franchise market has produced a multitude of amazing success stories, but why do some not scale as efficiently and achieve duplication of their brand through franchising?

When you franchise a business, you enter a new world of business, some business leaders just aren’t great at being a coach.
Just because an entrepreneur makes a fantastic product and excellent pizza, doesn’t necessarily mean they have the business skill set needed to teach, coach or mentor others. 

Franchising is a business where the franchisee invests in the business because they need advice, guidance and counselling from the franchisor.  A Franchisor needs to be able to share and teach intellectual property to new franchisees and sometimes the entrepreneur can hold back the growth of the company if they are unable to communicate effectively to teach, train and sell the vision of the franchise model. 

Our direction to a business that is just starting to Franchise the Business model, do a hard self-evaluation, if you don’t have the skill set to do this, there are lots of professionals out there you can bring into your system to support your growth and be a leader within your franchise business.

Franchise Development is a Serious marketing and sales business

There are cases in franchise development where “Build it and they will come” holds true, but the majority of the time, it takes a concentrated effort to market, promote and sell the franchise.  When you franchise your business, you now are tasked with the responsibility of sharing your vision and convincing other people that what you have to offer is worth the investment and offers value to them overdoing it on their own.

Franchise development is unique in that you are effectively selling “air” when you promote your franchise brand.  This transition from selling a physical good, product or item to now selling an idea requires a good marketing plan, franchise sales process and resources to support these marketing efforts.

Typically, this requires the involvement of franchise brokers or professional franchise salespeople who can assist the new franchise in going to market.  The franchise systems that have success in franchising invest the time, money, and effort into franchise collateral materials, promotional tools and overall branding.

The great franchise systems certainly have a look, feel and presentation that resonates with a potential investor and looks bigger than a “mom and pop”.

You Should have a Great Concept when you Franchise your Business

Good ideas are never easy to come by, but when you do find one, the process of franchising allows a business owner to leverage that idea and monetize the concept through growth and duplication into new markets. 

Some markets are just tough to the franchise when it comes down to it.  If you have a QSR foodservice model and are considering franchise expansion, you better have a strong differentiator to be able to attract attention and draw interest from other foodservice franchise brands.  In some cases, established and mature markets can be franchised with a good concept and a unique approach to the model.

OrangeTheory is a great example of this idea, it started with a new approach to fitness and health services using the group fitness model and what started out as the “Ellen Latham” fitness program used innovative technology and system to help clients measure their heart rate as they went through the fitness program.

With partners, the business rebranded to OrangeTheory and in only 6 years was able to expand to over 1,000 locations worldwide.  Fitness is a crowded and competitive market which makes this growth even more incredible, but what has helped drive the expansion is a great concept, something innovative and different from what had been done in the past.

The branding and overall look, feel and presentation are what have helped carry the model forward and in an essence have been the vehicle to support new franchisees' willingness to invest in the model.  Ultimately, if you are going to franchise your business, you should have something innovative and something that will create interest and ultimately spark the investment in your brand and franchise model.

Good Numbers are the Heart of a Good Franchise

It only makes sense that when you franchise your business, you are ultimately selling an investment opportunity.  If the numbers and return on investment exceed expectations for franchise investors, odds are that the model will continue to sell and grow. 

The Creamistry Franchise model is a good example of this which is a new brand in the ice cream and frozen dessert market segment that has in a way redefined the market niche.  The model incorporates liquid nitrogen to freeze the ice cream product and at the unit, the level has produced significant revenues and profitability for early adopter franchisees.

Impressive financials have been part of the presentation for Creamistry and the response has been nothing short of miraculous with over 200 units sold in the first three years of franchise development. 

Fortunately, franchisees have been able to generate similar numbers in their units and continue to validate the brand and financials which in turn only drives more unit growth.  What Creamistry has realized, much like other brands is that when the model works and financials exceed the norm for an industry, multi-unit and master franchise growth becomes a reality. 

Multi-unit franchisees are capable investors who have the capital to invest in 2 or more locations at one time.  In some cases, they will invest in large numbers of units at one time exceeding 50 units over a defined time period.

For more information on how to decide whether to franchise your business and when is the right time to franchise, contact us for a no-obligation consultation to review the model.