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Expanding Your Success

Now, you’re ready to take it to the next level. You want to expand and increase your market share. But, let’s face it, you simply can’t be everywhere at once. You need competent help that’s as invested in your success as you are.

And when it comes down to it, that’s one of the biggest benefits of becoming a franchisor. Every franchisee is as vested in your business as you are – because they’re not just “hired help,” they’re owners with a real stake in the company’s overall success.

Of course, that’s not the only advantage of franchising your business. In fact, it’s just the beginning. Let’s take a look at all the benefits you reap as a franchisor.


Increased Profits

You’re in business to make money, right? Well, franchising is an excellent means to make more of it. When you sell a franchise, what the franchisee really buys is your proven “recipe” for success: your business model, your brand, your system. In return, you profit – and the original sale of the franchise is just the beginning. As a franchisor, you also collect revenue from ongoing royalties, service fees and the sale of products or equipment.

Increased Market Share

If you want to edge out your competitors, there’s no better way than to develop a strong market presence. With multiple franchise locations, you can rapidly and measurably increase your market share without the hassle – or expense – of establishing company-owned stores. And as an added bonus, every marketing endeavor can be coordinated to benefit each franchise owner and the parent corporation (that means you).

Reduced Expenditures

How much does it cost to open a new location? When your franchisees are absorbing the expense, your costs are practically eliminated. In addition to the right to become a part of your system, your franchisees are also assuming the financial responsibility to make the business work. And that includes real estate costs, equipment, furniture, inventory, supplies, employee wages, payroll taxes and working capital.

Franchisee Benefits

The benefits are attractive. So much so that, as a franchisor, you may wonder what’s in it for the franchisees. What makes buying a franchise – your franchise – so appealing? It’s an important question because you need franchisees to succeed.

The good news is that the benefits of buying a franchise are just as attractive. For example, your franchisees will gain instant brand recognition, initial training, ongoing support and increased purchasing power all for much less than it would cost to start an independent company.

What’s more, purchasing a franchise is one of the safest ways for entrepreneurs to become business owners. In studies conducted by the U.S. Chamber of Commerce and the U.S. Small Business Administration, for example, it has been reported that while 97% of franchises were still operational after five years, over 60% of non-franchised businesses had failed after only six years. Similar studies have determined exceptional success rates for franchise systems worldwide.

Is Your Business Right for Franchising?

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