Why Franchise?
Whether you have a new concept to introduce; an existing business in need of faster growth; or just don’t have the capital to expand, the question often is “Can we afford to go slowly and perhaps miss the chance of a lifetime, or should we take the expansion plunge and risk losing the business itself?
Franchising allows brands to branch out and grow while giving entrepreneurs and small business owners a chance to run their own operations with the help and support of a larger organization with a proven formula for success. Franchising is a tempting way to find business success. However, it’s essential to understand what’s involved before taking advantage of this less risky – yet still rewarding – option for starting a business.
Franchising is the modern way to raise capital.
The cost of franchising is often a smaller investment than the cost of establishing even one new outlet. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee and royalties, the right strategy for selling your franchise idea can become an immediate high-impact low-risk revenue source.
Franchising can provide the capital for rapid growth, especially if you fit into any of these scenarios:
- If your business doesn’t have the capital, or the people, or even the time to create a company-owned growth system;
- If your business has the potential to grow faster than most company-owned programs;
- If you want to supplement an existing distribution system;
- If you need to improve systems through tighter controls or more motivated management.
Think do you have what it takes to franchise? Find out which qualities are essential to making it work. It only takes a few minutes to take our quiz. Perhaps you’d rather download this worksheet to determine your potential as a franchisor. You can learn more about preparing your company for franchising and the franchise timeline. Learn about Franchise Times’s proven method of developing a franchise in 20 steps, which has proven successful for thousands of established clients. Of course, you’ll want to avoid the ten most costly mistakes in franchising. Franchise Times can help you decide whether franchising is the correct choice for you. We’ve provided successful service to over thousands of very well established franchisees. Speak to a Franchise Times Consultant who will evaluate your concept, check the feasibility and suggest valuable suggestion to conclude the plan. Franchising is not for every company, but may be just right for yours.
