Do you have a successful business that you would like to expand into new markets? As a business owner, no one has to tell you that opening a new location takes time, effort, and money. If your vision is a little larger than your resources, it might be time to learn about how to franchise a company. Concerns about protecting their brand and ambiguity over legal processes often deter business owners who are considering franchising, but with a little education and some trusted advice, it may be more accessible than you think.
Protecting the Brand
Franchise owners are willing to pay the extra start-up costs and commit to monthly, quarterly, or annual fees because of the predictability associated with an established brand. The legal contracts governing franchises do not end after the business is started, which means the parent company has tools available to ensure and enforce ongoing compliance with brand standards.
Business owners have watched their companies grow into trusted community institutions. It is understandable for them to feel a little nervous about putting their business names, products, and processes into the hands of someone else. Still, carefully written guidelines and expectations can help protect your company’s good name for the future.
Assessing Your Readiness
In a world full of multinational franchises that generate billions of dollars in revenue, it’s easy to assume that your local business is too small to franchise or that the process is too overwhelming. However, the reality is that your commitment and your business’s fundamentals are two of the most essential factors in successfully franchising.
When you run a business, you have to be an expert in that business and its market segment, which means you’re probably not an expert in franchise law. So before you rule it out as an option, check with someone you trust who does have that expertise to see if franchising is right for you.