In the US, it’s estimated that about 10.5% of all businesses are franchises equating to approximately 600,000 franchised companies. If you’re a successful business owner, you might have been considering franchising, and it might be time to take the leap.
More Americans are pursuing franchising as a means to expand their businesses to grow greater profits and boost their brand. Franchising your business can be one of the best strategies to achieve greater financial success and build generational wealth.
Although it can be daunting, it doesn’t need to be if you utilize the services of a qualified franchise expert like the ones at FranchiseYourBusiness.com. With a professional on your side, you can build a successful plan to franchise your business.
Yet, what exactly can franchising do for your business? Read on to learn more.
Is Your Business Franchisable?
Before we discuss what franchising can do for your business, we want to tell you more about how you will know if your business is franchisable.
Unfortunately, not every business can be franchised. Have a look below at our brief list to determine if you have a chance at franchising your company:
- Is your business unique? If you have a company that can be differentiated from your competitors, it will be more marketable and likely to succeed as a franchise. So carefully examine your business and determine if it has a sustainable competitive advantage. If it does and you have a superior selling position, you’re more likely to be successful.
- Is your business credible? If your company is not credible, it is unlikely to succeed if it switches to franchising. You can establish if your business is credible by looking into if it has a proven concept, experienced management, a verifiable track record, good local press, and a strong social media presence.
- Is your business teachable? You can’t hope to franchise your business if it can’t be replicated and that means training people to do what you do. The best way to know if it’s teachable is to ensure you have established systems in place with documented operating procedures that are learnable. If someone can learn to run your business in a few short months, it’s likely teachable.
These are only some of the criteria a business would have to meet to be a good candidate for franchising, but they will give you a good idea. An experienced consultant can help you look at your business from all angles to determine if franchising is right for you.
What Can Franchising Do For Your Business?
When you choose to franchise your business, you combine your company’s strength with the financial resources, motivations, and ambitions of individual entrepreneurs. Some key benefits you can expect franchising your business to afford you include the following.
If you franchise your business, you can use other people’s money to expand your business dreams further. For example, franchising means other people are using their financial resources to buy or lease equipment, and property, make rental or mortgage payments, and cover the costs of employees.
With a franchise operation, your business will not have to worry about these expenses as each outlet will be responsible for its own. Ultimately, this means you can use the revenue earned through royalties to invest in the franchise or elsewhere.
When you’ve franchised your business, you may have more personal time and freedom and/or greater profits. , This is because the day-to-day management of each franchise outlet won’t be your responsibility.
With more time and money, you can focus on enhancing profitability and expansion to become even more financially capable and stable. [what does financially capable mean?
Positive Brand Recognition
It can be challenging to get your business noticed; thus, obtaining the recognition you feel it deserves can be a challenge. By franchising your company, you can develop a marketing plan to create brand recognition that each franchisee can build on.
Often franchising a business means you will require your outlets to contribute a percentage of gross revenues to a regional or national advertising fund. Additionally, you might require your franchising outlets to spend a percentage of gross income on local advertising annually. These funds dedicated to making your business known will naturally increase your brand’s recognition.
Speak To A Franchise Consultant Today To Discuss Your Franchising Options
Evidently, there are many reasons why franchising is a good idea, especially considering all the positive things it can do for you and your business. So, should you want to learn more about how to get started and if your company qualifies, speak to a franchise consultant.
At FranchiseYourBusiness.com our knowledgeable consultants are ready to help you realize your business dreams. Simply get in touch with us here, and we’ll arrange an obligation-free consultation. You can give us a call at 833-372-6249.