Between building a larger community network, adding an additional revenue stream and the plethora of other advantages to turning your business into a franchise, it can seem like the obvious next step for business owners that are anxious to further growth.
While franchising can provide immense success, achieving better business margins is not guaranteed.
To determine if your business is ready, prompt an honest conversation with yourself with these three questions:
1. Have you seen consistent success?
While there are no rules about the required years of experience, revenue dollars, etc. before you can franchise, owners should be able to demonstrate that their concept is successful enough to take on a second location. Think about how you will pitch to potential franchisees when that day comes—you should be able to communicate the value of the business and the success they can reasonably expect from buying in.
2. Can the success be replicated?
Seeing business success is promising, but the revenue of the company doesn’t multiply just because the number of storefronts does. If your business gets boosts from a local event, one great shift lead or customers specific to your current neighborhood, attempting to replicate that might be challenging. However, if your operations don’t have many variables and you think a new region will benefit from your business, that’s a good sign that expanding will be a positive thing.
3. Are you ready to invest in your franchisees?
In large companies, the responsibility of providing training and resources doesn’t typically fall with the owner. Being a new franchisor means building that support network from scratch. Providing continuous support to franchisees is an investment in not only their success, but the success of the franchise as a whole—therefore it’s a responsibility that should not be taken lightly. The franchisor-franchisee relationship is equal parts manager and mentor, and you need to be ready to provide the guidance they will seek.
If you’d like to learn more about franchising your business, that’s our specialty! Contact Franchise Foundry today to learn more about what franchising can do for your business.