FRANCHISING YOUR BUSINESS
The fact is, we regularly receive calls from business owners that have no reason to consider franchising their business, and many start by immediately asserting the fact that their business is either, new, struggling, or not even opened yet, but that they think their current or future business will be the next great American franchise.
Because franchising is consistently reported as being such a hot industry, it tends to give the impression to would-be Franchisors that it is much, much simpler than it sounds to become a franchise powerhouse, and many equate the “build it and they will come” mentality with the franchise industry. It is quite concerning how many business owners and opportunists assume that any business can be easily franchised and replicated by the hundreds into successful units.
When you opt for a franchise route you need not go through the initial problems of setting up a business from scratch, because somebody else has already done the entire spade work. Somebody else has already proved that the business model works. Thus your business is based on an idea that has already been translated into reality and proved its success.
HOW TO START A FRANCHISE
Aside from the costs for utilizing professionals service providers, the total financial investment and steps required to properly launch and fund a new franchise model can vary considerably from industry to industry.
This makes it extremely difficult for me to quote you a specific cost estimate. Typically, the amount of investment that is required to adequately fund a launch will be in close ratio to the differences t hat you would find in funding the original business when compared to other businesses.
My point being, is that it is more affordable to fund an original business that is service based, requires little capital investment or equipment, is operated in a minimal space requirement and with limited staff than say a 400-seat restaurant that requires substantial real estate, equipment, furnishing and personnel to establish and operate.
While some of the steps and costs that are incurred to start a franchise based on a large business are the same as those to start a franchise based on a small, more limited size business, many of the additional costs will be based on the complexity of the original business.
For that reason, it is important to obtain a clear understanding of the costs that are expected for developing your specific business into a proper franchise model. This can generally be accomplished by seeking professional development services or using the guidance of an experienced franchise attorney with a strong business background that can also guide you through the business portions of the development process.
The benefits are attractive. So much so that, as a franchisor, you may wonder what’s in it for the franchisees. What makes buying a franchise – your franchise – so appealing? It’s an important question because you need franchisees to succeed.
There are many benefits of franchising. The benefits of becoming a franchisee are that the franchisor has already established a profitable business model that is tried, tested and proven to be successful. The products or services that they provide are in demand and could be supplied and sold or provided in new areas, counties or even countries as their reputation and brand awareness increases.
The good news is that the benefits of buying a franchise are just as attractive. For example, your franchisees will gain instant brand recognition, initial training, ongoing support and increased purchasing power all for much less than it would cost to start an independent company.
The Fastest-Growing Sectors in the Franchise Industry
If you’re one of those who likes things to move fast, who wants a new challenge all of the time, then maybe a fast-growing franchise is for you. We’ve culled the fastest-growing franchises from Entrepreneur’s Franchise and compiled a list to get you started–fast.
This ranking is not intended to endorse any particular franchise, but rather to provide a starting point for your research. Due diligence includes thoroughly reading a company’s literature and its Franchise Disclosure Document, calling and visiting existing franchisees, and consulting with an attorney and an accountant. Here’s where slowing down makes sense: You should only buy a fast-growing franchise after you’ve taken the time to conduct a careful investigation.