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Have you ever thought about franchising your business?
If not, you should know that franchising is one of the most dynamic growth vehicles available
to you. For example, in the United States alone, franchising
is estimated to represent 40 percent of all retail sales.
We’re talking hundreds of billions of dollars. And while restaurants are a major part of
it, franchising also includes healthcare, education,
automotive services, finance,
lawn care, staffing,
and many other industries. If you think that you might benefit from franchising,
the first thing to ask is if your business is,
in fact, franchisable. Is it profitable?
Does it provide adequate returns? Is it credible
in the eyes of potential franchisees? It needs to be easily cloned.
And if it’s a little unique or sexy, that helps too.
Legally speaking, a franchise is defined by FTC Rule 436 which says that a franchise is
a business relationship in which three elements are present.
The franchisee is entitled to use your trademark. The franchisee is provided with training and
assistance. And you, as the franchisor,
collect a fee or royalty. If you have all three, you have created a
franchise—regardless of what you call it. And, since violations of franchise laws can
have significant consequences, you should certainly talk to a professional before you
plan your business expansion. So, why is franchising so popular? Well, it
solves three basic problems: money, time, and people.
By using other people’s money, you’ll be able to grow your business without the
capital or bank financing required to open more company-owned units.
You’ll save tons of time on work the franchisees do —finding sites,
hiring people, training staff, and opening the location—enabling even faster growth.
And you know you’ll have the right people, who are highly motivated by their own investments
and are in it for the long haul. In fact, studies have shown that franchisees
can outperform company managers by up to 30 percent.
If you’re interested in franchising your business, there’s one company that can help.
The iFranchiseGroup has a 12 point test that can help you determine if your business model
is, in fact, franchisable. And if it is, we can also help you determine
if franchising is really the best course of action for your particular business.
To receive a free evaluation, plus a free 90 minute educational video on
“How to Franchise Your Business,” visit ifranchisegroup.com/franchise-my-business/
or call us now at 708-957-2300.