Should I franchise my business? How should I decide?

Franchising is often a fast, efficient, and effective method of expanding an existing business. Businesses in over 120 different industries have used the franchise model to facilitate growth, and it’s easy to understand why.  When you franchise your business, franchisees take on the burden of investing in and opening new locations. Franchisees speed your business growth, taking on the day-to-day operations so you can focus on big picture issues such as increasing the value of your brand.  However, the answer to “should I franchise my business” is not always “yes.”

Franchising is not right for every business.  It carries some inherent risks and important considerations that prospective franchisors should consider before deciding it’s time to expand. When you’re asking “should I franchise my business,” here are some questions that can help you decide:

  • Has your existing business been financially successful?
  • Can you offer potential purchasers a unique and enticing product and business system?
  • Can potential purchasers rely on you to continue to provide new and innovative products that compliment your core business?
  • Can your past success be replicated in new markets and with new management?
  • Can you easily teach someone else how to operate your business system in less than three months?
  • Will your business be so lucrative for potential purchasers that it makes financial sense for them to choose you over the competition?
  • Are you ready to build relationships with your franchisees and provide a support system dedicated to their success?
  • Can you afford the new investment that franchising a business requires?

Each of these questions mandates careful consideration. If you are unsure of how to analyze these issues or you think you are ready to proceed, then it’s time to reach out to a skilled franchise lawyer who can assess your business and help you successfully transition into the world of franchising.

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