Call Us Today! 949.282.7304|info@franchisebeacon.com

Franchising

Why Franchising Your Business Makes Sense

Why Franchising your business makes sense
Franchising is a unique method of growing your business; it truly is a merger of large-organization efficiency with small-business, entrepreneur spirit and motivation. Of course we talked a lot about the fact that not every business should franchise, but if yours is right for franchising you will experience an awesome wealth-producing machine. So lets talk about why franchising your business makes sense, and the benefits of franchising.

the benefits of franchising your business
If you are wondering what the benefits of franchising your business are, here are just a few:

Less Capital Requirements
Fuel the growth of your business through the capital invested by each individual franchisee.
Add Additional Revenue Streams to Your Business
Franchise Fees
Royalty Fees
Advertising and Marketing Fees
Sales of Company Branded Products
Sales of Supplies
Training Fees
Sales of Promotional Products
The Ability to Expand Rapidly
Opening multiple locations at the same time allows you to obtain a large footprint quickly while putting your company a step ahead of the competition.
Gain Quality Management in Additional Units and Maximize Unit Revenue
Having an owner running the business usually insures that there will be a level of service and dedication that typically can’t be found in an employee. Franchisees have a vested interest in the success of their business and with their investment at risk, franchisees should be much more motivated than an employee.
Larger Advertising and Marketing Budget
Many franchisors institute a national advertising fund. This requires the franchisees to contribute a percentage of their gross sales to a fund used to increase advertising, name recognition, and the overall value of the business.
Branding
Opening units throughout the country will increase Brand awareness adding value to […]

Why become a franchisee?

This article was featured at Franchising.com. Check it out here: http://www.franchising.com/articles/why_become_a_franchisee.html

Why become a franchisee? Well, if you are looking to start your own business, an excellent way to minimize risk, while increasing the odds of succeeding is to consider opening a franchise. There are many options available, such as; retail chains, fitness gyms and even pet franchises. Whatever your passion is, there is likely a franchise business that will allow you to do something you love, while still making a profit!

When you are researching what type of business you would like to own, it is important to evaluate all of your options and consider the advantage of launching a franchise. Listed below are some of the many advantages to owning a franchise business.

 

Spend less time getting started. The difference between starting a franchise business compared to starting a business on your own is, the franchisor steps in to help you expedite the start-up phase by providing you with a plan and helping you make crucial decisions such as site location, hiring new staff members and promoting the grand opening. The franchisor has an invested interest in seeing your business succeed, and will draw upon past experiences in starting other operations to help get your business off the ground.
Benefit from national brand recognition. Some of the most significant benefits of owning a franchise business are brand awareness and national advertising power. By joining a franchise that is already well-known and respected, you don’t have to spend as much time educating your target market on what your company is all about. In addition to launching national advertising campaigns, franchisors help you establish an effective marketing plan and provide advertising materials to help make your […]

Are you ready to Franchise your business?

Wondering how to franchise a business? Before embarking on a franchise development program you’ll want to determine if your business has what it takes to be a viable investment opportunity for investors and if you are ready to franchise your business. Listed below are a few questions that one should carefully consider prior to moving into a franchise model. There are many factors to consider when deciding if franchising is right for your business, however positive responses to the following questions are a good indication that your business might be ready to start franchising.

Is there more than one location currently in operation?
Is the current business operation a suitable prototype for the franchise model?
Is there a system of processes and procedures currently in place for the business?
Has the business been open and operating for more than two years?
Are the profit margins sufficient to institute a percentage of the gross sales to be paid to the company in the form of a royalty and continue to produce a profit?
Are there proprietary systems, products or services in the operation of the business?
Is the business unique in any way or one of the few within its industry?
Are there economies of scale related to purchasing, advertising or administrative functions that will increase as additional locations are added?
Can others be trained to duplicate your existing system?
Is the current business profitable?
Have you had individuals or investors express interest in opening additional locations for the company?

 

Franchise Beacon chooses to work with a select few companies each year to insure that each one of our clients receive service that is second to none, so it is imperative that the company encompasses the following:

The concept […]

10 Signs you should or shouldn’t franchise your business

Before you ask how to franchise a business, you should ask if you SHOULD franchise your business. Not all businesses will make good franchises, and not all business owners will make good franchisors (or franchisees, for that matter, but we cover that in a different article). To really know if your concept is right for franchising, you should work with a competent professional to do a feasibility study, but here are some quick flags that franchising may or may not be the way for you to go:
Ten Signs you should franchise your business
1> You have a proven concept
2> You have a team in place
3> You have been approached by multiple people asking to buy a franchise
4> You are profitable
5> Your business runs smoothly without your presence
6> Your local business growth is starting to plateau, and you are looking for the way to the next level
7> The idea of helping other entrepreneurs is exciting to you
8> You can teach others to do what you do
9> Your market can weather an economic downturn or recession
10> Your business is high-margin
10 signs you shouldn’t franchise your business
1> Your are looking for a way to save your business
2> Your business would likely fail without you behind the wheel
3> You are struggling financially
4> You can’t imagine moving your location, it wouldn’t work as well anywhere else
5> You can’t take a day off or go away on vacation because the business would fall apart
6> If your business had to give away 5% of its gross sales, it would fail
7> Your business is very reliant on something that is popular in your area (surf shop, ski shop, etc)
8> Your industry is facing technological obsolesce
9> You love what you do and can’t imagine […]

The Outsourced Solution

hat does an outsourced franchise solution really look like? What are your roles and responsibilities, and what does is your franchise consultant do for you?

First, it’s important to understand that there is no such thing as one size fits all. Where you are in the lifecycle of a franchisor, what expertise you have in-house, and what type of franchise program you offer will all have bearing on the divisions of labor. If you are just learning how to franchise a business, your franchise consultant will most likely be intimately involved in most of your day to day decisions; what executives to bring on, how to market your franchise, what information should be contained in the FDD, how to use your Operations Manual, and much more. If, however, you are a mature franchise just looking to outsource your sales efforts, your franchise consultant may be less involved in your day to day operations, though they still need to have an excellent understanding of your offering.

Typically, in an out-sourced solution, the roles and responsibilities are clearly defined at the outset. The franchise consultant typically guides this conversation, as they should have the expertise to know what should be outsourced, and what should be kept in-house. Though a devision of labor between the franchise consultant and the franchisor will be agreed upon at the outset, this will also be fluid, as the needs and resources of each company change.

In the end, an outsourced solution is a partnership. Make sure that you partner with the right people, and make sure the terms of the partnership are clearly defined. Learn more about partnering with Franchise Beacon.