From 2013 to 2017, there were nearly 50,000 new franchises added in the United States alone.
It’s clear that other business owners understand the benefits of franchising their businesses or else there wouldn’t be so many new franchises opening up.
If you’re still on the fence, here are 4 reasons why you should franchise your business.
What is a Franchise?
According to Forbes, a franchise is “a chain of businesses that share a common brand and a consistent customer experience.” Ace Hardware, Subway, and Marriott Hotels are all examples of franchises. If you set your business up as a franchise, people known as franchisees will pay you to open their own business using your brand name.
1. Easier to Expand
Franchising your business makes it incredibly easy to expand. Rather than needing a large amount of capital to pour into a new branch of your business, the franchisee takes care of all of the expenses and work. They are the ones that have to find a location, hire employees, and so on.
People that choose to run a franchise are often very motivated to succeed. After all, they’re pouring their own money into this venture and want to get a return on that investment. Because of that, you as the business owner get to work with motivated individuals that will help you expand your company.
2. Reach More Customers
You can only reach so many customers where you are currently located. By franchising your business, you can quickly and easily reach more customers by being in more than one location. There will be a completely new customer base at the new franchise that you had no way of reaching before.
3. Build Your Brand
One of the best ways to build your brand is to franchise. Having more than one location establishes your business as something more than just a small business. Your brand will begin to be recognized by more people as the franchisees market their locations and more people become aware of your business.
4. Make More Money
When the franchisee initially starts their business using your name, they pay you to use your brand and so on. This helps them start a business more easily because they don’t need to start from scratch. It helps you because you get to make more money without putting more money into it.
Then, every month, the franchisee gives you a percentage of their profits as part of their agreement. As they do better, you do better. We can’t imagine an easier way for a business to increase their bottom line without increasing their overhead.
How to Franchise Your Business
If you feel that franchising your business is the right choice for you, then the first step you need to take is to get legal advice. A franchise legal expert will be able to help you take the necessary steps to set your business up as a franchise.
They will help you draw up contracts for potential franchisees and guide you through everything else that you need to do so you can successfully franchise your business.
Looking to franchise your business? Contact your local legal franchise expert team today!