So you’ve started your own business, and it’s really started to grow. You are making good money, you have as many employees as you can handle, and you’re looking to expand. But you know that you aren’t able to be everywhere at once. How can you continue to expand your business without expanding your own workload and responsibility? The answer may be franchising, and this article will help explain how to franchise your own business.
What is franchising?
Franchising is when you permit other people to start their own businesses while using the name, brand, and logo of the company you own. Basically, they use your good name and the precedents you’ve set to go into business themselves, and in exchange for this they report to you and hand over a share of their profits, along with reporting to your central management. Some successful franchises include Wal-Mart and McDonald’s.
How to franchise your own business
Franchising is a common practice among modern businesses, and the first step is to find a corporate lawyer or service firm dedicated to franchising. There are numerous services throughout the country eager to help you in this regard, so it’s important to shop around for someone with a good track record. After all, you will need to establish a franchise which not only provides your customers with what they need, but provides potential entrepreneurs with the guidance and rules they need to succeed. There are also many issues to consider when turning a small, local business into a chain, and it’s important to have good legal and financial advice concerning your business and those of potential franchisees.
Is a franchise right for me and my business?
Not all businesses are meant to be franchises. Generally, businesses which offer products and services with wide appeal and require easy access make good franchises. While restaurants are the ultimate example (indeed, most fast food sold in America is sold from franchised businesses) businesses such as book stores, clothing outlets, and pet shops are also often franchises. While franchises do mean extra hassle and effort, they do offer benefits to those industries which are well suited to them. Wal-Mart, the largest franchise (indeed, the largest retailer in the world) raked in over 387.69 Billion in revenue in 2007, and McDonald’s earned over $22.79 billion. While of course it took many years and thousands of franchises to reach such high levels of revenue, the flexibility and transferability of responsibility offered by franchises ensure that they can expand quickly to meet consumer demand. Starbucks, for example, was able to quickly open many stores to meet demand through franchising, something and non-franchised business, dependent on placing and operating stores through a central authority.
Franchises are a great way to make your business grow. Not only do they offer you the opportunity to make more money by serving more customers in more locations, but they ensure that your stores are staffed by hard working, dedicated franchisees who are dedicated to making your business work.