The Top 7 Reasons to Franchise Your Business
Below is a list of some of the top reasons to consider franchising your business.
1. Faster Growth with Business Partners
Franchising is a way to expand quickly with talented partners – your franchisees – who have pride in owning and managing their own business. They have the motivation and personal incentive to be successful as owners, helping you expand quickly in this proven partnership model.
2. Capital to Expand
Franchisees pay you for the opportunity to own and operate one or more locations. This initial capital, along with the long-term royalty stream, provides funds for you to market and expand your brand without tapping deeply into your own capital. As the network grows, the value of each unit grows too. In addition, lending sources generally have more confidence in franchises, which have proven results.
3. Delegation of Staffing and Operations
Franchisees manage their own franchise locations, you don’t. They handle personnel payroll, management, recruiting, hiring, training, motivating, and scheduling. You train the franchisees and they train their employees. This frees you to focus your energy on building a national brand, not on managing local staff or dealing with the day-to-day issues of each franchise location.
4. Great Brand Recognition
More stores or locations mean more customers, visibility, and brand name awareness for your company. Customers can find your brand in more places, increasing customer loyalty and confidence.
5. Higher Unit Sales Potential
Franchise operations typically outperform company-run locations by 15 to 30 percent. Why? Because the franchisees have invested their own money to make a living and have their own future on the line. They take the risks and bear responsibility to make each store as successful as possible.
6. Group Buying Power
Better advertising buys, lower vendor costs, and system networking create operational advantages that small independent businesses don’t realize. Franchising offers economies of scale that immediately help your entire network to save money and add more to your bottom line.
7. Leverage for Your Legacy
Franchise unit growth and market penetration create additional sources of revenue and savings to help you create your legacy. As your franchise expands, so does the legacy you build for yourself and your franchisees.