Keys to deciding on business growth through franchising
Is there still room in the franchise industry for me to consider growth through franchising with my small but successful business?
Without you they’d be no growth at all!
Thanks for the question. To many it may some rather simplistic, but in fact, it’s complex. Here’s why.
First and foremost, without people like you the franchise industry would shrivel up and die. Growth through franchising is the very lifeblood of the business. Consider that times dictates change … always. How do the giants of US auto builders stack up today? They don’t run the industry any longer. Have there been multiple (successful) challengers to McDonald’s other mega chains? Yes … over and over again.
Franchising has distinct advantages over other methods or channels of distribution. First, it uses OPM (other people’s money) in order to expand. Franchisees purchase licensing rights from the franchisor and also pay for establishing the business. However, the franchisees also do one other very important thing – they provide management of the new location, and thus, save the franchisor the huge cost of staffing and managing each growth location.
Do we suggest that you franchise? No, not at all, because you, your business, your risk tolerance and a hundred other things are important to ‘your’ decision of whether or not to franchise. It’s up to you to read, research and educate yourself on franchising and here’s one article to get you started.
But, as far as growth through franchising, if you and your business are suited to that environment, never question whether or not there is room for a new entry.