A reader of one of my online sessions asked should he franchise his business or not. He had set up a service business and was getting ready to expand and wanted to know if franchising was a good potential strategy for this. How do I franchise my business? There are many criteria for franchising and if you have ever thought you might wish to franchise your business then this advice could be of value to you:
You cannot determine if you should franchise or not until you have perfected your operation, any thing less than perfection will be doing a disservice to your future company and franchisees. I am not advocating waiting until it is actually perfect, for that day may not ever come, but rather making that a goal of your business building before deciding to franchise or not. Go read the "E-Myth."
It is possible you might be pre-empted as your profits will be taken by attorneys and lawyers due to the increased regulations in franchising. We have issues in the US where workforce is often under the impression of the right to be irresponsible and if they do not work hard and fail they will most likely blame you and sue. So many factors to consider and many are not in any books. I would say; you need to start with about a million dollars solely dedicated to the franchise part of the business to get it to work. Not including all the prototypes or company owned stores or operations.
There is an overload of information on this topic, but anyone truly interested in franchising needs to study up on these methods. If you can; I recommend some good books or articles on this subject you might wish to read:
The Franchise Bible
Trips and Traps When Buying a Franchise
Franchising 101
Franchising for Dummies
Franchising and Licensing
I have read and own probably 30 books on the subject all have tid bits but these ought to be a good start. If this it not sufficient, a longer list can be made available from www.franchising.org . Remember most people write books for a reason; if it is written by an attorney it will have legal slant, an entrepreneur will have an optimistic and promotional slant, a consultant will have a strategic slant. You see? The book most important in my professional opinion after you have franchised would be; "The Franchise Relationship" www.franchiserelations.com .
If you are considering the franchise format to expand your currently successful business then these are aspect and information you should be well versed in to make it all work. I wish you the best of luck and continued success.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
Most of us remember going to at least one garage... Read More
As a solo entrepreneur or small business owner, one of... Read More
Franchising Corporations need to maintain an iron fist when it... Read More
Are you a small business owner who wants to expand... Read More
Every home business has the same problem of how to... Read More
The challenges of the small business owner are well documented.... Read More
Top 3 Ways to Maximize Your Small Business Server Consulting... Read More
Last year, trillions of dollars transferred hands on the internet... Read More
When you awoke this morning, you found yourself buzzing with... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
At first blush this idea might be difficult to wrap... Read More
Writing a business plan is a fundamental step to ensuring... Read More
Most doctors never distinguish the difference between customers and patients.... Read More
Cash flow. To stay in business, you've got to keep... Read More
CONSIDERING COMPANY NEEDS: In identifying your needs for the internship,... Read More
Opportunities for home show businesses have never been more abundant.... Read More
Do you have all the customers your business can use?The... Read More
The choice to incorporate a small business in Florida has... Read More
Where would a business be without a business plan? A... Read More
1. Have A Strong Constitution ? Justices deliver decisions by... Read More
If you run a pressure washing company in a rural... Read More
We have all seen the mobile washing units cruising our... Read More
Great question!Freeing your time is an indisputably key element in... Read More
Most small businesses will not even try to advertise on... Read More
If I had $1.00 every time I heard someone say... Read More
Opportunities for home show businesses have never been more abundant.... Read More
There is a great deal of abuse going on in... Read More
You can make your trade show experience much easier by... Read More
In the heavy equipment cleaning business you can make good... Read More
There are countless ways to save your business money. Unfortunately,... Read More
It's a commonly quoted statistic: 80% of all small businesses... Read More
Should your business have a toll free number for customers... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
When a person knows and knows not that he knows.... Read More
Whether it has been thrust upon you by external market... Read More
As a home business proprietor, you may already realize why... Read More
A top executive called up me late in the night.... Read More
Just a few years ago, when one thought of a... Read More
A successful joint venture marketing effort is the goal of... Read More
The Federal Trade Commission decided to sit down and revamp... Read More
Sacred cows take a long time to die. We get... Read More
1. Everyone Makes A Difference ? Despite not letting him... Read More
The choice to incorporate a small business in Florida has... Read More
Just when the entire state was kissing Wichita goodbye, economically... Read More
As a practitioner and student of Small Business Marketing, I... Read More
The Dynamics of Daylight Savings Time changes the way we... Read More
Think of your business as a living, breathing, organism. It... Read More
If you are a motorcycle detailer and need to expand... Read More
Do you have all the customers your business can use?The... Read More
Introduction: This article is written as a general discussion on... Read More
Small Business |