Franchising Your Business

 Why Does Franchising Make Sense?
 What Does It Take to Succeed as a Franchise?
 Can FranchiseHelp Assist Me In Franchising My Business?
 More about iFranchise Group services
 Got Questions?

Why does franchising make sense?

FranchiseHelp believes that if your business is "franchise-able", you should seriously consider this option.  Becoming a franchise is the fastest, most efficient, and, in most cases, the most cost-effective way to expand a business.

Many successful business owners investigate franchising for the following reasons:

• Franchising entails a far lower capital investment than opening company units or territories.
• Franchisees provide most of the growth capital through franchise fees and royalty fees.
• The franchisee has a vested interest in making the business work and will generally be much more motivated than hired management.
• Many units can be opened in a short time which can eventually lead to brand name power.

But the transformation of an independent business to a franchise system is not so easy. It takes money (which may be a large amount for some fledgling businesses) and a considerable amount of time.  Before you commit to any plan, you need to determine if your business is "franchise-able".

What does it take to succeed as a franchise?

Do you operate a successful business? Are you lacking the necessary capital to expand rapidly?

Is your business cutting edge or enjoying great popularity and you worry about competing companies popping up? Then, you might want to consider franchising your business system.

Answer the questions below to evaluate whether your business can succeed as a franchise:

1. Your business should have at least one unit or territory operating successfully and profitably— but it is preferable that your business has three or four units, or coverage of a substantial population or territory.
2. You should have a registerable mark for your business. If you sell products, you must register a trademark; if you sell services, you register a service mark.  This is essential since your goal is to have an identifiable brand.  
3. The business should have long-term market potential. Businesses which capitalize on fads are not good candidates since the product or service may be passé in a few years or less. Try to make a reasonable assessment that the business product or service will be in demand for at least the next 5-10 years. Businesses which are unique in some way lend themselves well to franchising.
4. The operation of the business must be teachable. Remember that in many franchises the franchisee has no prior knowledge of the business. The smallest details of operating the business must be taught to the franchisee so that he/she can be successful. Many businesses are not transferable to others because much of the decision-making and day-to-day operations emanate from an owner who has honed certain skills over many years and has certain talents which cannot be taught.
5. The business owner should be sufficiently capitalized so as to not cut corners on the legal and consulting expense necessary to properly register the franchise and to formulate strategy.  In addition, as a franchisor, you will be responsible for the formulation and implementation of a training program and must provide a comprehensive manual for franchisee use. Lastly, the franchisor should have employees on staff to administer to franchisee needs; this may entail additional hiring of personnel.

Can FranchiseHelp Assist Me In Franchising My Business?

Although FranchiseHelp has provided this in-house service in the past, we now recommend a very specialized company to assist you. The company is iFranchise Group -- a Consulting firm with 25 consultants and over 400 combined years of franchising experience. iFranchise has worked with many of the nations top franchisors. We believe you will be in good hands with iFranchise Group and highly recommend their services. Ask about iFranchise Group's no-cost assesment of franchiseability. Give them a call at 708.957.2300 to discuss your particular needs or email jjanusz@ifranchise.net.

More About iFranchise Group Services:

More about why you should consider the iFranchise Groups to assist you in franchising your business. Click here

Got Questions on Franchising Your Business or want to contact a Franchise Attorney?

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