5 compelling reasons to join a franchise
Franchising offers budding entrepreneurs the...
The tendency, when you own a thriving business, is to look for ways to grow it. Not only does expanding the business allow you to cater to more customers and generate more profit, but it provides you with greater brand visibility and a stronger market share. There are many ways in which you can grow your business, but one proven strategy is franchising.
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How does franchising work?
Instead of opening another location by yourself, you license your brand and its products and services, allowing other carefully selected entrepreneurs to operate under your brand name, following your system, paying you royalties and accepting responsibility for their location. As a franchisor, you share the risk, and in exchange, you provide your expertise and oversight to help these new franchisees successfully operate a branch of your business.
By implementing a franchise agreement like this, you are able to maintain consistency and quality control, grow your business quickly, and develop a strong team of people who are equally committed to the success of your brand.
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How to successfully franchise an existing business
Always focus on quality over quantity. It is far better to be very selective about your prospective franchisees, only accepting applications from people who are passionate about your brand and who share your vision and ethos. Although you may only open a couple of new locations, they are more likely to succeed because you will be able to adequately support and mentor your new franchisees, maintain a consistent message, and keep standards high.
To this end, you should specify the criteria that will determine who you will accept as a franchisee. Evaluate them based on the attributes that are most important to you, and meet with each prospective franchisee in person to assess whether they are a good match for your business.
Remember that you will need to continue to run your own business while also onboarding new franchisees and helping them to get established, so look for people with a strong business acumen who understand their capabilities and will seek professional support as needed for areas in which they are less experienced. Obtaining the right people will help control your costs while maintaining growth and profitability.
Use the tools at your disposal. Refer your franchisees to your franchise attorney, accountant, marketing agency and any other professionals who already understand and support your business. This will ensure efficiency, accuracy and consistency.
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Why franchising?
Franchising is a proven business model that encourages collaboration, creates a supportive network and helps businesses to grow with less cost and risk than they might otherwise encounter.
