Franchising has boomed in recent years, and the reason why is because it works. You can build a solid enterprise with a good concept, good management and the right amount of capital. Here are the top five reasons why it may make sense for you to franchise your business.
- You want to expand your brand, but don’t have the capital to do it yourself. Franchising allows you to use the capital of others – your franchisees.
- You want to expand quickly. Franchising allows you to grow faster than if you opened multiple units on your own.
- You don’t have the human resources to open units on your own. Remember that as a franchisor, it is not your responsibility to staff each location. It’s the duty of the franchisee.
- There’s a lot of competition in your area. Franchising will allow you to build your brand out into the marketplace rapidly, providing you with more opportunity.
- You need an exit strategy and don’t know how to sell your company with only a few company-owned units. Franchisors have an open path to exit by selling the company or going public. A small, company-owned system does not have this option.