Deciding On Business Growth Through Franchising
I have a small but successful small business. Is there still room in the industry for me to consider growth through franchising?
Without You They’d Be No Growth At All!
Thanks for the question. And while it might sound simple, it’s quite 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 franchise industry. Consider that time always dictates change … always. Have there been multiple (successful) challengers to McDonald’s? Yes. It’s happened over and over again. Perhaps not to the same scale, but certainly highly successful runs.
The Franchise Advantage
Franchising has distinct advantages over other channels of distribution. First, it uses OPM (other people’s money) in order to expand. Franchisees purchase licensing rights from the franchisor, then use their money to establish the business. Franchisees also do one other very important thing. They provide management of new locations, and thus, save the franchisor the huge cost of staffing and managing each new location.
Do we suggest that you franchise? No, not at all. Because you, your business, your risk tolerance and a hundred other things should factor into 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.
Becoming a franchisor is expensive. It’s not for the faint of heart. It is loaded with pitfalls. It requires a stiff learning curve. 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.
If franchising is on your mind, make contact and we’ll be glad to talk about it with you.