As you watch your business grow, it’s only natural to think about how to continue that growth and expand.
Instead of trying to do all the work yourself, you have the option to franchise your business. But is that the best opportunity for you? While franchising isn’t new, you have to consider its potential just as you would with any business decision.
Here we take a look at the four major benefits of franchising your business.
Other People’s Money (OPM)
When you franchise your business, each individual franchisee is like a mini-investor into your company. Each franchisee uses their own money and capital resources to open, operate, and expand their franchise.
The challenge to growing any business starts with limited capital resources. In franchising, you can expand your business using other people’s money without diluting your equity in the ownership of the intellectual property, systems, and processes.
Attract the Best Talent
If you’re looking to grow your business, you want to work with the brightest minds possible. But if you only have one location that access is limited.
By expanding your business through franchising, you can pick and choose who you want to help you grow your business as a franchisee. You can interview them and review their qualifications just as you would with an employee, but there’s an additional benefit to this.
Your franchisees will be business owners in their own right. They will be much more invested in their success than they would if they were simply an employee. And as you might imagine, their success equates to your success.
Speed of Growth
Any business experiences growing pains when they reach a point where they’re ready to expand. Most of the time this is due to having limited resources in order to make this happen.
Franchising is a vehicle of growth which allows you to expand at a tremendous pace. There is no guarantee about how fast you will grow, but it gives you the chance to expand exponentially. We have a phrase at Big Sky Franchise Team which says that franchising lets you, “Catch lightning in a bottle.” Franchising allows you to expand at rates most likely not possible through company-owned growth.
By franchising your business you have franchisees who can do some of the heavy lifting for you. Your franchisees will be paying you an upfront franchise fee to sign on to your organization. They will also pay you royalty fees on a regular basis. Not only will this provide you with funding for your business, but it will also prevent you from having to seek out financing from banks or other resources.
Franchisees will also run their locations as an independent business. You won’t be required to spend time opening and running those additional locations or managing staff. Franchisees handle that for you as it’s their own business. This means that you can focus on opening additional locations yourself or on other ways to grow and expand your business.
Broader Brand Recognition
With additional locations, you will also experience enhanced brand recognition. If you only operate out of one location, again only your local community will know who you are and what your business is about.
However, the more locations that are operating under your brand, the more your customers will recognize you and know what to expect from your business. Think of franchise businesses like McDonald’s, Jani-King, or Dunkin Donuts. Whenever you come across one of their units, you know exactly what to expect from them. You know what their products and services look like.
As the number of your franchise units grow, people will develop familiarity and recognition towards your products and services.
Should You Franchise Your Business?
Now that you’ve seen the benefits of franchising your business, is it something you’re interested in?
If you need help going over the details or considering your options, why not reach out to an expert team who can help you decide?
At Big Sky Franchise Team, we can help you look at whether franchising is right for you and what it would mean for your business. Click here to sign up for a free consultation or call us at 855-824-4759 and we’ll help you explore your options.