If you own a business in multiple locations, you should consider franchising it. Like living cells that multiply and reproduce into thousands in no time, a carefully executed franchise program can spurt your business growth globally. Notable examples are 7-Eleven that has 36,000 stores in 20 countries and Subway with 33,000 outlets spread across 91 countries. If you’ve read in magazines about companies franchising and think “My franchise concept is so much better than this company”, then it is time you finally call the shots on expanding the franchise style.
Usually, people franchise their businesses due to one of the three reasons—shortage of capital, people or time. Here are a few reasons why franchising will be a good call to see your company growing the way you always wanted it to.
If you are worried about arranging capital to expand your business, then you can finally be at peace with the franchise plan. The fee that franchisees pay to open up your company’s franchise is enough to cover costs of rents, signage, fixtures and other opening expenses that might incur. The franchisee’s fee also eliminates one of your greatest concerns: the risk of loans and borrowing money. The initial money provided by a potential franchisee takes care of the capital that is required to open up an outlet and your business can grow without depending on loans.
Franchising your company is just like DNA replication. You copy-paste a tried and tested formula and the franchisee takes it from there without much expenditure of resources from your end. So it goes without saying that franchised networks can expand more rapidly than company-run networks. With the franchise plan in action, you will be free to expand geographically without the major problems of money, managers and human resource.
Better Market Infiltration
When you go global, your market share automatically increases manifold. Even with local franchises, franchisees are generally well established in the community and that gives them an edge in gaining more customers for your company. This cannot be said for company’s own employees. So, franchisees can get better business for you at a local level and of course, at an international level as well if you go global.
You are spared from the hassle of recruiting, hiring and firing of employees over and over again. You don’t have to manage managers either. Once your franchise is sold, it is the franchisee’s responsibility to build an efficient team to see his investment become fruitful.
Franchisees are driven people who want to see this business succeed as much as you do because their investment is at stake too. Since they own a part of your business, they take pride in it and work ceaselessly to make it flourish. It is a mutual interest to see your brand grow in leaps and bounds and reap profits along the way.
Bottom line is that if you want to franchise your business and wish for it to be successful, you will have to seek out good franchisees and the rest is a favorable chain reaction.