Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business Entrepreneur

Franchising your business: should you take the leap?

Franchising a business is the logical next step for many businesses, but there are some basics to consider before moving forward – let’s examine them.



Franchising your business, expanding your formula

Now that we’re a few days into the new year, people begin to seriously buckle down on the resolutions they set out for themselves (unless you’ve decided to give up already). For a small business owner whose company is running smoothly and meeting revenue expectations, one of those resolutions might be to franchise the company.

If you’ve found a formula that appears to work, it makes sense to wonder if it can be replicated in order to extend the success of your business. But there are some things that should be considered before moving forward with this decision if you want the experience to be positive and profitable.

Do you have the resources to expand?

This question is hugely important. Before you go forth and multiply, will you be able to reach the increased product demand needed to fill new incoming orders or requests for service? Is there a large market in the areas you want to open franchises in?

You want to make sure that your business can rise to the challenge of increased demands as poor performance drives consumers into the arms of your competitors. And before you begin making money, there will be legal fees and other start-up costs in order to get these additional locations going.

Advertisement. Scroll to continue reading.

Does your business have a positive trajectory for growth?

In order to remain competitive, your business must be flexible enough to adapt to market changes, trends and expectations. This disruptive nature in the market shakes things up and weeds out weak contenders. If your business plan possesses a strategy of continuous innovation year over year, your company could benefit from opening franchises and helping lead market change as your increased presence helps your brand gain even more visibility.

However, if you franchise into multiple locations with a stagnant plan, you’ve increased your problems tenfold.

Who is your model franchisee?

A franchise is an extension of your business so you should take care to choose individuals who positively reflect the values and work ethic that you want to promote. While these franchisees do report to you, there’s a lot that can go awry while you’re manning headquarters, so choose wisely.

Are you a good instructor?

The people who will be operating the franchises are initially taking their cues from you regarding products, marketing and overall operations. Do you have all of your business processes fully documented and have the capability to instruct how to run your business?

You want your franchise to reflect positively on you, and therefore need to be able to impart these specifications and practices to interested franchisees to ensure the new locations meet your standards.

Advertisement. Scroll to continue reading.

Destiny Bennett is a journalist who has earned double communications' degrees in Journalism and Public Relations, as well as a certification in Business from The University of Texas at Austin. She has written stories for AustinWoman Magazine as well as various University of Texas publications and enjoys the art of telling a story. Her interests include finance, technology, social media...and watching HGTV religiously.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Finance

Business owners are no strangers to placing bets on their own success, but retirement planning shouldn't be risky.

Business Entrepreneur

Being a freelancer, it can feel like a luxury to fire a client, but there's a few clear signs they're not worth your time.

Tech News

Some small business owners aren't doing as bad as you may think in the midst of inflation. The businesses are still booming!

Business Entrepreneur

Layoffs are spreading and small businesses are no exception. Business owners can prepare with this how-to guide on severance packages.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.