Franchising My Business | Franchise ConsultantsApril 28, 2022
http://www.franchiseasap.com/ Franchising My Business /Franchise Consultants
Our company, Franchise ASAP, does turnkey franchise development and would welcome the opportunity to share with you how franchising could help you grow
successfully. Franchise ASAP provides Fast, Affordable, Experienced Franchise Development.
We’d like to share our FREE eBook, “The Advantages of Franchising”, with you. Our eBook is a result of being asked repeatedly by business owners, “should I Franchise My Business?” Below is an excerpt from our book…just send an email to Tom@FranchiseASAP.com to receive the entire FREE eBook. If you have questions or would like more information, we’d love to chat. Call 770-595-1055
THE ADVANTAGES OF FRANCHISING
Franchising is the American Dream, with a safety net. It’s the most effective merger of
large-organization efficiency with small-entrepreneur motivation ever devised. Not every
successful business should franchise, but given the proper situation and concept, it can be an extraordinary wealth-producing system for the business that is franchisable. So, let’s start by answering, What is a Franchise Business?
Franchising is one of the most popular forms of business expansion in this century. So, let’s examine the pros and the cons of why owners Franchise a Business.
Capital : Franchising is a method of expansion that allows a business to expand rapidly with a minimum of its own capital. We know of only one effective way to expand without
giving up control of either your business or its assets and that is by selling franchises.
The money you get from the franchise fee will usually do little more than pay your
expenses for finding and training your Franchisees. A group of Franchisees using your name and producing a 10 year royalty stream is a form of capital.
Image: At the local level, the Franchisee is a very visible member of a community or
neighborhood. A local Franchisee generally represents a higher level of community
commitment and involvement with customers than does an absentee owner.
Profitability: With a Franchisee involved in the hands-on operation of a franchise, labor costs can be kept down, allowing a unit to be profitable with a smaller population base (and possibly with lower sales levels) than other units may require.
Efficiency: Local owner-managers can usually operate their units with more efficiency and less bureaucracy than a company-run unit. The Franchisee is also more attuned to changes his specific unit may need to adapt to his community.
Let’s assume that you have an unusual concept—one you’ve tried and tested locally but that has not been exploited by any other company nationally. Or, let’s suppose another company has made your concept work in some other region of the country and you are concerned that they will move in to compete against you in your region. Franchising is the one expansion system that enables the small or medium-sized entrepreneur to become the dominant force in a market by being first in the market.
On the contrary, in franchising, a head start by anyone is extremely significant. A
successful franchise program attracts prospective Franchisees like a gold strike attracts
miners. As the most successful franchises grow, the problem becomes less one of
“selling” franchises than of separating qualified from unqualified applicants.
Franchising then, can enable you to saturate an existing market and penetrate new
markets as well. And, as your franchise grows you can, if you desire, use earned revenues to build additional company-owned units, particularly in areas where you feel you need market saturation to limit your competitor’s access to that market.
Buying Power: As your franchise grows, collective buying power can become a significant advantage. Everything from equipment to inventory can be purchased by Franchisees from approved suppliers at group discounts. In fact, for Franchisees in product businesses, savings resulting from collective buying often surpass the royalty fees they pay. If the Franchisee can reduce his or her cost of goods by 10% or 20%, that amount goes straight to the bottom line. There are collective buying advantages for a service-oriented business, too, including better equipment that helps the Franchisee do the job faster, less expensively, and more efficiently.
As a Franchisor, you may want to devote some portion of your income to developing new technology, new products, or new systems that will benefit your Franchisees collectively……read more…..just request our FREE ebook!
Like more information? Send us an email, Tom@FranchiseASAP, give us a call, 770-595-1055, or visit our website: http://www.franchiseasap.com