Why should you Franchise your Brand?
Have you spent years working hard and trying to build your business? Are you looking at taking your business enterprise to the next level? Do you have loyal customers who come from afar and who have asked you to open alternative outlets for their proximity or convenience? If your answer is “Yes” on all counts, then you need to consider franchising your business or brand.
Franchising is a great way to expand your business in quick-time. Do you know that 1 in every 10 businesses in the U.S. is a franchise? Do you know that a new franchise is born every 7 minutes? Franchised businesses rake in more than $1.2 trillion in sales every year. Moreover, the advent of the Internet has contributed immensely to franchisees. Needless to say, it is in your best interest to expand your business, using this route.
Franchising helps you expand your business by giving away licensing rights to a 3rd party. These rights are used by the 3rd party to run and operate the business at a fee. A franchisee has access to trademarks, service marks and the mode by which the business is meant to be run. A good franchise brand combines the strength of popularity with the resources of an entrepreneur and if done right, you can enjoy the following benefits.
- Firstly, quality management is assured. Since your franchisees are investing their own money they have a stake in their profits and this means they will take the business seriously. In other words, this means that they will promote the brand, lower costs and tweak the operation to suit what works.
- Secondly, rapid expansion is guaranteed because the expenses are shifted to people who have bought your franchise and who want to succeed.
- Thirdly, you get the chance to boost your name because franchisees are promoting your brand. Some smart franchisors ask for a percentage of their revenues to be diverted into a promotional fund, in order to ensure that advertising remains important and productive.
- Fourthly, franchising also improves spending power because you can broker a deal with your suppliers and have them work with other franchisees. These suppliers can provide materials at a low-cost because they provide wholesale.
Franchising is not something that you should rush into. It is a business structure that takes tact and time. You need to make your franchise system interesting. People must find it profitable and want to sign-up. Take out time to see if your infrastructure is well-suited for franchising. Do take out time to also enroll the services of franchise consultants and other professionals to help you decide if your business can be harnessed with a comprehensive franchise system.