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Reasons To Franchise Your Business

Every year more than 300 successful business owners tap into franchise development resources, invest millions of dollars to license their brands, and launch in the $670 Billion franchise industry.

Even though many of these business owners successfully leverage franchising as the powerful expansion tool that it is, about the same number – 300 – exit franchising each year, for various reasons.

On the surface, it could appear that the franchise development market is stagnant but that isn’t the case.

There is infinite untapped, pent-up demand for best-in-class franchise development resources from successful small business owners around the globe who want to expand their footprint and launch their unique brands in new markets.

If you have a successful small business and you are considering different strategies to expand and grow, there are compelling reasons to turn your business into a franchise.

Why Franchise My Business?

  • Grow Big Time!
    Franchising is a powerful technique and is fast becoming THE way to scale a viable business. If your brand is strong enough to attract serious franchisees with the capability of launching effectively, then you’re on the right path. The franchisee shoulders all the investment fees and start-up costs. Your job is to teach them how to re-create your business model.
  • ROI Expansion
    The lower your investment costs, the faster and more exponential the ROI becomes. You should pay attention to royalty rates when assessing ROI. The going rate is anywhere between 4 to 8 percent, with the most common rate being 6%. Here is a helpful calculator for that.
  • International Opportunities
    Wouldn’t it be neat to see if your restaurant idea could work in Canada or Sweden? Franchising is very lucrative on an international level. You may need to make some adjustments for local fare, but remember, McDonald’s, the most franchised company in the U.S., has locations in more than 120 countries.
  • Spread The Risk & Liability
    Conventional wisdom tells you not to put all your eggs in one basket. Turning your sole proprietorship into a franchise business model allows you to eliminate the fear of losing everything to an unforeseen calamity in any given local market.
  • Less Micromanaging; More Visionary/Macro-Managing
    Are you tired of micro-managing every business detail? Tired of dealing with the same monotony in one spot? Franchise management is akin to being a district manager in charge of several locations; even a national manager if your franchise is registered coast to coast. You become the CEO, the visionary leader.
  • Focus on Strategy and Continuous Improvement
    This is both a blessing and a huge responsibility. Long-term strategizing is essential to success as a franchisor. Once you’re in charge of a system of 5, 10, or 20 units, you spend less time thinking about the office supplies (except perhaps how to gain economies of scale) and more time analyzing your KPIs (Key Performance Indicators. Your time will also be focused on attracting your ideal franchisee candidates and the continuous improvement of your process to award franchises.
  • Deeper, Broader, and More Sophisticated Branding
    The larger your operation gets, the more it moves toward sophisticated branding rather than cheap advertising. You develop a deep identity as a business. That’s also when you need to contemplate having a greater digital presence to raise awareness for your business units. Consider employing the services of a savvy digital marketing firm to optimize your web presence.
  • Franchisees Are Not Employees
    Your franchisees are not like employees. They’re fellow business people with similar business ambitions to your own. It’s much better to manage and partner with confident individuals with similar motivation levels. And who knows, it’s not uncommon for franchisees to become key leaders in the franchisor’s corporate organization.
  • Recruitment
    This might sound a little counterintuitive but think about it. If you have a proven business method, an exciting and compelling story for your emerging brand, attractive fees, and professional materials — including a well-done FDD (Franchise Disclosure Document) — you can turn over your candidate recruitment effort to select broker networks. You don’t pay the broker unless you award their qualified candidate a franchise. The broker’s commission is typically a percentage of the initial franchise fee. is a global resource center for anyone considering turning their business into a franchise.