Why franchise my business?
So you already have a successful business so why franchise my business? Well there are many reasons businesses decide to franchise but here are a few great reasons why to franchise your business;
- Raise capital – It’s not always easy to raise finance to grow a small business. It also usually always comes with strings attached as well such a personal guarantees or secured against property or other assets etc. By franchising a business your incoming franchisee will raise finance for the businesses expansion in their area and by effectively using multi individuals/business credit profile it will give your business potential access to vasts amounts of capital at no risk to your core business
- The staff headache – Getting good staff is always a challenge, getting staff that are loyal, hard working and also buy into your company and mission is even harder. Many businesses like to franchise because franchising has very flat management structure. Local franchises being run by franchisees that have effectively bought into your business and have a substantial financial stake in the business.
- Rapid growth potential – Franchises because of the above has an exceptional opportunity for rapid growth
- International expansion – Franchising makes it far easier to grow your business internationally, usually this happens when the franchise business ( Franchisor ) grants what is called a Master Franchise, basically a country licence to effectivelt be the Franchisor in the country and grow the business by recruiting local franchisees. Local laws will be different so expansion via a Master Licence makes a lot of sense to the Franchisor as the Master Licencee will need to make changes to the business model, agreeements etc to fit the local market, reducing costs and time for the Franchisor
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