Franchising is now one of the most accepted and successful business formats. It has made many entrepreneurs rich, not only the franchisees (buyers of the franchise), but also the franchisors (owners of the franchise) as well. LegalZoom vs ZenBusiness
In fact, there are countless individuals who have franchised their business formats, made their franchises grow to national and even to international markets. Success came to them and if you are bold and imaginative enough, it could come to you also – as a franchisor.
Today, there are various business types and kinds which are available for franchise. Ink refills, ice-creams, laundry and dry cleaning, fast food take out and delivery, pizzas, schools, coffee shops, internet cafes, potato chips stand, and thousand other businesses-you name it, you can franchise it.
If you have a business, it is now time to franchise it like what many other entrepreneurs did, and be rich.
What is franchising? In simple terms, franchising is a business system, a marketing method for distributing goods and services to the consumers. There are two parties involved: the franchisor, who developed and owns the system and lends his name to it, and the franchisee, who buys the right to operate the business under the franchisor’s name and methods.
Why franchise your business? Franchising enables you to expand faster by using other people’s money. By focusing on other business owners, you can generate more cash and labor to tap even distant and out-of-reach markets in different locations at the same time. Moreover, franchising gives small entrepreneurs and start ups businessmen and women with limited capital, know-how and experience the opportunity to succeed.
Under the franchise set up, the franchisor provides assistance and support to the franchisee for the use of the brand name, methods and system of doing business, advertising and training, so that the latter can set up the business in his area. In return, the franchisee pays the franchisor the fees and royalties.
How do you know if your business is “franchisable” or can be developed into a franchise? In reality, not all businesses are franchisable. This is because not all formats, systems, and strategies can be transferred. Each type of business is unique and different, with its own product/service characteristics, markets, and geographical reach.
However, your business is franchisable if it has many or all of the following characteristics, stated in the form of questions:
1. Is your business profitable?
2. Can your business generate and sustain revenue to attract potential franchisees?
3. Do you have an operating system and procedure for running it?
4. Are you willing to share your system and ideas to other people?
5. Is the product or service your business offers fill the needs and preferences of the consumers?
6. Do you want to expand rapidly through other people and in other locations?
7. Is your business relatively easy and simple to manage?
8. Can you provide training, advice, support, and are willing to coordinate a network of independent business owners?
9. Does your business offer a different product or service which are distinct from that already in the market?
10. Is your business prepared to enter into a business relationships with independent operators, say for 3-5 years?
If your answer to most or all of the above questions are in the affirmative, then your business is franchisable and you can now start developing your business franchise. This way, you become a franchisor and get rich in the process.