8 Reasons You Need to Franchise Your Business

For many years there's been a common misconception about franchising businesses. Most believe this practice is only available to fast-food restaurants, when in fact there are more than 300 types of businesses that franchise. 



When you franchise your business it opens up a whole new arena of possibilities for growth and development. It often changes the course of the company. 

While there are many reasons to franchise, we've compiled a list of the top eight reasons it will benefit your business to move towards franchising. 

1. Develop Your Brand

As a business, one of your main goals is likely to continually develop your brand and gain online brand recognition. 

When your brand is identifiable and has a good reputation, you're more likely to have customer loyalty. That loyalty will lead to more revenue and sales for you, which is a very obvious, big benefit. 

Franchising your business is a great way to develop that branding by helping you to focus on what makes your business special.

This focus is what you'll share with your franchisees and what they will put out in the world. Having franchised operations allows you to get your brand out to a wider audience much quicker. 

2. Streamlines Practices 

As you focus in on your specific branding goals before franchising, you'll also need to streamline all of the operations and practices involved in running your business. 

When you franchise your business, you essentially hand over an outline for how to run your company to sell your products and services. Your franchisees then follow that outline, giving you a portion of their revenue. 

Before you can hand over that outline, you'll have to make sure it's the most streamlined it can be to get the most revenue from your franchisees. 

This forced streamlining can save you tons of money over the life of your business. 

3. Hardworking Employees

In order to become a part of a franchise, the franchisee must essentially buy-in to the business. This initial investment often creates more loyalty to the company. 

That makes sense as a person is likely taking a financial risk to become a part of your franchise, they'll do whatever it takes to make the investment successful. This means there is often less turn-around in a franchised business. 

Dedication and motivation are two crucial elements to a productive manager so having those qualities built-in is a major bonus. 

4. Increased Capital 

As a business owner, you know how important capital is to the growth and success of your company. 

This money is crucial to be able to invest in the supplies, space, and people needed to be able to expand and continually provide more. But capital isn't always easy to come by, especially when first starting out. 

Franchising allows you to grow without having to put up all of the capital yourself. The franchisee's fees will help you to put up that money to start in new areas. 

5. Less Daily Management 

There are a lot of benefits of being the boss but there is also a lot of responsibility. The daily tasks of managing a business and its employees can be overwhelming and tiring. And might not be how you want to spend your time. 

Opening your business up to franchising removes you from those daily management tasks. 

Instead, you are in charge of hiring and managing franchisees. From there they take over those daily tasks and are responsible for their employees. This frees you up to work on more exciting business tasks. 

Franchising allows you to be more involved in the big-picture elements of the company, which is very exciting! 

6. Higher Valuations

Every good business person knows that the company's valuations are really important to the overall success and opportunities available. 

Valuation is the way that companies can see how much they're worth. They go through a process of professional evaluation of their financials, practices, and other factors. This number can determine what kind of financing they can get or stock prices. 

Franchising your business often leads to a higher valuation. This is mostly due to the quicker growth that comes when you have these branch off businesses. 

A higher valuation is always a good thing and something businesses should strive for. Franchising might be the way to get there. 

7. Target an Audience 

Breaking into different markets is key to successful growth for any company. But that can be a bit difficult to get established in the new area. 

When you franchise it allows you to naturally and organically break into different markets and geographic areas simply by bringing on franchisees who fit your target audience. 

As you move towards franchising, working with a professional to come up with a solid, strategic plan to reach your target audience. 

8. Expansion Opportunities 

There just aren't expansion opportunities like those that come from franchising. No matter what type of business you are, franchising allows you to more easily open more storefronts and sell more products. 

One of the greatest advantages of franchising is that, in many cases, someone else is doing the market research for you to find the best places to open. 

The franchisee will likely do the research before trying to buy-in to the company. This gives you an advantage of local knowledge and inside information of the overall area and community.

Expansion is the way you make more money and extend the life of your company. When you franchise you have greater opportunities to do just that. 

Franchise Your Business Right Away!

One of the main goals of every company is to continually expand and grow, which can happen in a wide variety of ways. The choice to franchise your business often accelerates this growth. 

The expansion that happens from franchising is unlike any other and has many benefits to you as the owner, as we've discussed. 

But it also is a huge benefit to the franchisees as well. They get to be a part of an established brand and company, become small business owners with built-in mentorship, and have continual growth opportunities. 

If you're interested in learning more about franchising your business, contact us today!