Benefits of Franchising Your Business

Benefits of Franchising Your Business

As an entrepreneur continues to grow their business, managing all aspects of the day to day business effectively quickly becomes a challenge.  Multiple locations of any enterprise involves many moving parts, all of which need to be monitored and maintained in order to sufficiently and successfully exercise a typical day of business.  Elements such as staffing, customer service, sales and brand continuity all become more and more difficult as   Growth can lead to unsustainability if not acted on properly.  Business owners frequently wish for expansion, but fear their ability to control each operational process will become muddled or lost altogether.  And, in most cases, they are probably right.  Many times, business owners who grow through company-owned and managed locations run into obstacles that hinder growth as the business expands beyond what they can manage directly.   


It is at this crossroad in a business’ growth that franchising becomes a viable expansion option.  Franchising your business allows you to multiply a brand’s footprint, but with added manpower and capital to scale the growth.  The value of having independent business owners who have money invested and their direct, onsite focus is enormous and the performance of franchise-owned and operated businesses almost always outperforms company-owned locations of the same business model.  Franchising your business can also reflect positively to the business’ image, as the public sees this new business as locally owned and operated and if the franchise owner is the right person they are connected to the community and know how to connect to consumers in the area. 


People are naturally attracted to familiarity, and a process that is consistent regardless of the location in which it is being executed will lead to successful results.  Franchising allows a brand to grow and duplicate at several levels.  At the national or global level, all franchisees and corporate units contribute to a marketing fund that is used to promote the brand and build awareness for the company.  At the regional level, franchisees work together through regional cooperatives where advertising dollars are spent in a region to build local awareness and leverage economies of scale in advertising and promotion spend.  At the local level, franchisees are required to spend dollars in promoting and advertising the business in their immediate market.  The combination of the advertising platforms maximizes the opportunity for brand development and makes franchising a win-win relationship between franchisor and franchisee.  


Franchising your business allows entrepreneurs to attract other like-minded people with a thirst for owning their own business, but with the desire to have guidance and support along the way.  Many do not want to endure the time, effort and risks inherent in starting a business from the ground up.  By purchasing and joining a franchise, franchisees are able to reduce the stress and increase the chances of success.  Franchising your business will naturally pool resources together – collaboration amongst franchisees leads to sharing of ideas and proper quality checking of each system and process.  A business owner benefits in having easy access to criticism in an appropriate and relevant manner.


The benefits of franchising your business can be extensive, but when it comes down to it, the key benefit is a transition from operational focus to strategic.  The entrepreneur who is able to make this transition stops focusing on the small items inherent in managing a business and begins to focus on what strategic aspects will help drive the growth of the brand and scale the business.  The funny thing about this transition is that people who are stuck in an operational mindset many times are busier and work harder than those who are strategic-minded.  Franchising is a big picture initiative where the product becomes the business model itself and with each transaction, the brand grows exponentially. 


For more information on the benefits of Franchising Your Business, Contact us:

When Are You Ready to Franchise Your Business?

When Are You Ready to Franchise Your Business?

You have a business and want to expand.  There are a variety of ways to expand the number of locations, company owned, bringing on partners, venture capital or franchising. Many businesses decide that franchising could be an extremely effective way to develop a brand and business model without the intensive capital or staffing needs of other channels. But how do you know your business is ready to franchise and how do you know when is the right time to franchise your business? Here are some items to think about if you’re seriously considering whether to franchise your business.


1- Is your business currently successful and how do you define that success? If you want to entice entrepreneurs to invest in your brand, it must have a track record of solid revenue growth, dependable profit margins, and a strong customer/client base. Your business may be ready to franchise if the business has credibility based on current success.


2- Why is your business successful? Can that success be achieved in other locations in volume? The success must be due to factors that can be replicated and easily taught to others. For example, if your successful concept is based on a service that’s in high demand and isn’t widely available, your business may be ready to franchise if prospective owners can learn how to run your business model. But if the reason your business is successful is due to being located in one hot market or to having unique skills that make you best suited for success, you may not be able to replicate that success.


3- Can you afford to franchise? You may be ready to franchise your business if you have the capital to put the necessary franchise infrastructure in place. You’ll need to hire attorneys to provide legal support and all the necessary documentation. You’ll need to set up training, operations, and marketing systems. You’ll need to cover the cost of state registration fees. You may hire franchise consultants. The cost to franchise can range from $15,000 to $100,00 depending on the business.


4- Can you sell your franchise business concept to entrepreneurs? How will you convince anyone to spend the money necessary to open a location for your brand? You’ll need to market your business to prospective owners and sell them on your concept. You may be ready to franchise if you can make the argument that between the franchise systems you’ve put into place and the prospect for customer/client demand and revenue, that your business will be a success for anyone willing to take a risk.


5- Are you ready to provide the systems to franchise owners for long-term success? If you’re ready to franchise your business, your franchise plan must include systems for training, operations, administration, and marketing. If your business requires equipment, you need to find ways to minimize those hard costs for owners. You may need to offer assistance with lease agreements or attaining the most desired locations. Your business needs to be turnkey for every franchise owner. You may be ready to franchise your business if you have a solid plan for franchise owner support.


For more information on when you should franchise your business, contact us for a free franchise consultation:

Making a difference by Franchising your business

Franchising is one of the most powerful expansion vehicles on the planet. It takes a variety of business elements, systems, processes and market characteristics to franchise a business successfully. Most businesses that franchise are driven by the need to capture market share, generate investment dollars or add valuable human capital to the organization by ways of franchisees who invest in the business. Some franchise systems are driven by a greater calling though, one that revolves around giving to a greater good, a cause or something that carries social value. Franchise systems that have a calling, something they wrap the companies core operating principals and mission around have a unique set of advantages.

What does it mean to give back and have a cause that is intrinsically wrapped into a brands “being”? It starts with finding something that strikes an emotional chord with the leadership of the company. Something that wasn’t just picked out of a hat, but truly holds intrinsic value. A Franchise Marketing Systems client, Mosquito Terminators, who sold 87 units in the company’s first 18 months of franchising committed a percentage of overall revenues to give to a charity in Africa that helped kids avoid mosquito born diseases such as malaria. Classic Commercial Services is another example who through the brand’s classic cares platform everyone in the system commits two percent of gross revenues towards those in need. The ultimate example of this paradigm is franchise marketing system’s client Children’s Miracle Network where 50% of all revenues generated through the platform go back to the children’s hospitals the organization is designed to support.

Whatever the cause, it should mean some thing and be entwined into the culture of the organization. As in most aspects related to leadership, it is critical to be consistent with how these charitable causes are tied into every aspect of the business. You can’t be taken seriously in your mission to help people if other decisions you make in the business contradict your stated cause. The way you as the leader of the brand interact with your staff, support your Franchisees and even speak to people on the phone in conversation must align with your brand’s cause.

So how do you find a cause that means something to you? Start by watching the news….pay attention to what catches an emotional nerve and then align with a charity that fills that need. Do research on the charity first, a starting point are charity evaluation sites such as ( Make sure to do your due diligence and then build the commitment into your franchise expansion plans. The community, your franchisees and your peers will respect and love you for your dedication to helping people and your franchise will grow as a result of this.

For more information on how to franchise your business, contact us;

Top 10 Factors Leading to Greater Franchise Success

What are the top ten factors that tend to lead to greater franchise success?


  1. A business model that has structure, systems and processes will always scale more effectively than one that is just driven and pushed hard by a talented entrepreneur.  Business owners who are considering scale whether through franchising or company growth should focus efforts on building systems that would allow the intellectual property to be transferred to third parties.  Documenting processes in manuals, using technology to operate your business and investing in structure are all ways to achieve this.
  2. A sexy and professionally managed brand is critical in franchising.  You need to be able to present your business in a way that is appealing to the target customer AND the potential franchise investor.  (Look at Menchie’s new brand – Midici Pizza ( You should put thought and most likely some money into the branding of your business including color scheme, logo, taglines, look and feel of the brand.  There are many consultants and businesses who can help with this process.
  3. Operations documentation needs to be solid and consistent.  Good operations models should be able to teach someone how to hire staff, deliver the product or service and manage the business without the new owner feeling like they are reacting.  The process should be proactive and understandable for a new owner.
  4. Grand Opening / Franchise Market Introduction processes need to be in place.  It’s easy to forget what it was like to be single again.  As your business matures, you don’t need to go out looking for new business any longer, a new franchisee will be opening a business many times for the first time in their life and will need all the help they can get to start their business on the right foot.  You should define what happens when the doors open and how to help them get their cash register ringing.  This could include PR, TV, Radio, Pay Per Click or other mediums, but you need to tell them how to do it, not just make vague recommendations.
  5. Widespread appeal should be part of your business in order to transition to franchising.  Whatever you offer, it should be in demand outside of just your area.  Maybe this means adding to your menu…or altering your branding or just reviewing what your marketing message is, but you need to make your product appealing to more people to validate the franchise model to large extent.
  6. Licensing and permitting should be understood.  When scaling a business through third party investors, you should know what it will take for them to open their doors and start doing business.  Things such as a liquor license, real estate brokers license, contractors license or other permitting should be understood before you go to market.  (The Haven Senior Care Franchise helps franchisees with every step of the approval process for senior care licensing – ( The franchisee will need your help and guidance in how to best get their license and do it efficiently.  Define a process and have a good understanding for how this works in most markets.
  7. Ability to delegate.  Great franchisors are really good leaders and know how to empower others.  If you find that you are doing most things in your business today, then odds are that you will have a tough time scaling your business.  You should be able to teach and trust in others that they can do as good of a job as you can with your guidance.  This also means being fair and reasonable in compensation and understanding how to structure your employee benefits to get the most out of your team.
  8. Supplier arrangements should be in place.  If you make the best chicken pies on the planet, but you do it by hand and only you and your mother have the capability to manufacture, there certainly is a limit to how much you can grow.  Work with your suppliers and distributors to know what options you have – many times the production can be outsourced to food distributors who have the ability to scale and can grow with you as your franchise system expands.  These elements need to be understood in order to grow and a franchisee should have a solid picture as to how product will make it to their front door.
  9. Web presence is critical in today’s marketplace.  All good franchise systems have a really professionally done site, take the time and money needed to present your brand to the best of your ability online.  This is your storefront in today’s web-based market, it should look and present well in particular when franchisees come knocking and want to know whether your business is a valid franchise investment.  Today’s market demands a loyalty program and technology that supports your franchisees retaining their customers and driving more traffic to the locations, solutions such as FANConnect offer these platforms (  This also means you need to invest in your social media presence.  Obvious ones such as Linkedin, Facebook, Twitter but not so obvious ones that seem to pop up every day should carry your brand and be managed on a regular basis.  Having a Twitter account with your brand displayed with one update from 2013 isn’t cutting it, you need someone on your team or a social media marketing group to manage and oversee this process and make sure that your content is relevant and your brand is presented professionally.
  10. Be ready to sell.  Franchising is a marketing and sales business until you get your network established and you have franchisees to support and train.  The business requires that the owner is ready to get people excited and sell the vision to new potential investors.  The best franchisors not only are ready to sell, but love to sell what they do.  If you can’t get excited about your vision, why should anyone else?  Franchise sales requires lots of phone sales, in person discovery days, email communications and just about any type of marketing/sales you can think of, if you are ready to embrace the process get ready for the ride of your life, if it’s a struggle for you to sell, you may want to hire the right people for franchise growth.


For more information on how to franchise your business, contact Franchise Marketing Systems:

Why Would You Franchise Your Business?

Franchising is a broad-based definition used to describe an independent distribution channel.  It is a market that has become an industry by which business models are replicated through entrepreneurial relationships which share proven business models to energetic and enthusiastic entrepreneurs looking for an opportunity.  Franchising a business allows a business owner to acheive the following benefits:

1. Growth with less capital.  When you franchise your business, the franchisee makes an investment in the business.  They will build a location if required, fund the local marketing program and spend the capital needed to get the business off the ground in their market.

2. Infusion of energy and entrepreneurial mindsets into a growing business.  Many of the best ideas in franchised businesses came from the franchisees who had bought into the system.  Whether it was new technology, marketing, logistics management or the egg mcmuffin, franchisees have helped franchisors build more efficient and profitable businesses for years.

3. Benefit of gaining local “feet on the street”.  Franchising works effectively because the franchisee, if chosen correctly, will be someone who has influence, experience and a network already established in the market they are opening their business within.  An ideal franchisee brings an established network from which to build a customer base and an understanding for how the local market works in order to get the franchised business off the ground in as short of a time period as possible.

4. Speed of Growth – Franchising typically allows for a business to open 3-10 new units per year on average during the initial phases of growth.  In later years, as a franchise system matures, larger networks can open and add as many as 300 or more units in a single year through franchise distribution systems.  Franchising allows for fast growth over long distances in far away markets.

5. Operational Efficiency – Why is it so difficult to manage employees in locations that are farther away from home base?  It’s simple, when there is no one with an ownership stake in the business operating the location, the business will never operate as efficiently.  Franchised units have consistently outperformed company-owned units in many franchise systems including Dunkin Donuts, McDonald’s and others.  Franchisees have put their own capital into the business and want to see as much profit as possible come back to them for their investment.


Why franchise your business

Not all businesses can or should enter the world of franchising.  For an initial consultation and discussion regarding whether your business is ready for franchised distribution, contact us:

(800) 610-0292