Franchise my Business
We have a takeout food business that is doing very well. My husband wants to sell it because he is very tired of working 100 hours a week. It is a unique take-out with everything grilled and cooked to order. People have approached us about helping us franchise and taking part of the business. My questions is: Can we franchise our business without investors so that we own everything, as opposed to having partners?
Can you franchise a business without investors? The answer is Yes!
It’s quite interesting to us the number of prospective franchisors who seem to think they need at least one million dollars to initiate the franchising of their business. While most come to understand that much money is not required to start franchising operations, some still insist that major investors must be secured before franchising can begin. It’s just not true. Our inquiries that start out with “Dear folks, I want to franchise my business. We are successful with ……………… and we have been doing it for ………….. years” are our favorite calls and emails.
First, to conduct an adequate feasibility study is not terribly costly, but it should be demanded, and it could save you from the biggest sorrow of your life if franchising turns out to be a bad idea. And not a study that consists of listening to your business concept for five minutes whereupon a consultant begins selling you on the idea of franchising. (If you run into this common maneuver, get off the phone fast.) A good feasibility study takes time and the interest of both you and the people you retain to help you.
Second, franchising can be taken in steps. In fact, it should never consist of plans to franchise a state or the whole country. Proper planning is patient. Proper franchising is patient. The owner who declares “I want to franchise my business”, must also be patient.
Third, the overall cost of franchising should be affordable for anyone who has been operating a successful business long enough to demonstrate its worthiness to franchise. Our meaning is simple. A successful entrepreneur is one who works smart and is use to getting their hands dirty. They also know that their success is a direct result of full involvement and control regarding any new venture. Therefore, just as their direct involvement in growing the business has proved successful, as opposed to giving up control to investors, they will do more in franchising with less expense and usually produce good results. We’re not coy about the cost of franchising because there are variables. But, for the shrewd entrepreneur, investors generally are not needed. Then again, many a business owner would like that security and additional team members.