Franchise Your Business

Thinking About Franchising Your Business?

Franchising your business is the most dynamic method of expanding. Yet, not all of those that venture upon this strategy will find that to be a “road to riches.” Many companies have tried to franchise a business only to fail in the attempt.

Determining If Your Business Is Franchisable

When researching how to franchise a business, the iFranchise Group believes that business owners must first determine if franchising is even a legitimate option. With this in mind, the iFranchise Group has developed twelve criteria of franchisability that you can use to test the franchisability of your business. While not definitive, applying this test to your business will at least allow you to know where you stand and perhaps provide you with some insight as to how a business must be improved in order to franchise. However, if you’d like help determining the best strategy to expand your business, feel free to take our franchise feasibility quiz.

Understanding How Franchising Your Business Works

Business owners should gain a thorough understanding of what is involved in franchising in terms of resources, costs, and personnel. While your business may be ready to franchise, there may be financial, operational, or resources barriers that should be overcome before proceeding with this strategy. It’s recommended to review this with an expert franchise consultant.

Should You Franchise Your Business?

Assuming that you have a franchisable business and the resources necessary to succeed, your next step should be to determine if franchising your business is the best strategy based on your own personal goals and objectives. Just because a business can be franchised does not mean that it should be franchised. To do this, you will need to measure the advantages and disadvantages of each of your alternative strategies versus the advantages of franchising.

Each strategy should then be evaluated based on the goals, objectives, resources, and tolerance for risk. To best analyze these alternatives, we suggest that you request our free video on “How to Franchise a Business.” This video will provide you with the framework for analysis that will allow you to understand whether franchising is the best strategy to allow you to reach your business goals.

See what some of our clients have to say!

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FAQs

What are the 7 steps to franchise a business?

Determining how to franchise a business, and the necessary steps in franchise development include:
Step 1. Determine Franchisability
Step 2. Develop a Strategy
Step 3. Document Your Operations
Step 4. Create Legal Documents
Step 5. Produce Franchise Marketing Materials
Step 6. Develop a Solid Franchise Marketing Plan
Step 7. Prepare to Sell Franchises
For more details, view our 7 step guide on how to franchise.

What is the difference between licensing and franchising a business?

Franchising offers a comprehensive business expansion model in which franchisors share their brand, systems, and support with franchisees in exchange for fees. This collaborative and legally binding relationship aims to replicate success across a network of locations. Licensing allows businesses to utilize intellectual property, sometimes in exchange for a fee, but with typically less oversight and support when compared to franchising. The licensing approach is especially beneficial for product-based businesses. Understanding the differences between franchising vs. licensing is a crucial step in formulating a sustainable and legally-compliant long-term business growth strategy.

How do I choose a franchise consultant?

When choosing a franchise consultant, it is important to understand the breadth and depth of experience offered by the firm. Evaluate the type and number of clients they have worked with who have gone on to successfully franchise. Are there recognized names on the client roster? Review their individual consultants’ years and levels of experience in the franchising industry. Are they seasoned experts or new to franchising? Understand their service offerings. Are they a one-stop shop, or specialize in one particular area? Get a sense of how they work with clients. Do they charge ongoing retainers or provide services for set flat fees? Finally, ask to speak to client references to see what other companies have to say about their team, their services and their business philosophies. Learn more about the value of a franchise consultant.

Learn How to Franchise a Business from Expert Franchise Consultants

Franchise Your Business

Thinking About Franchising Your Business?

Determining If Your Business Is Franchisable

Understanding How Franchising Your Business Works

Should You Franchise Your Business?