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Franchising is a Way to Grow!

Often times people create a business to follow their passion and desire to become successful in their local market. Others create a business with the intent to grow it. Some even start their business to franchise it later. Why? Because franchising is a way to grow a business!

A True Story

George and his wife started their flower shop because of their passion for plants and all things green. They just really wanted to be successful in their local market and meet the demand for fresh flower and plant arrangements while providing fast and no-hassle delivery services at affordable rates.  Their “Mom & Pop” family business quickly grew to be quite successful. Alas, so did the headaches of their growing pains: back orders piled up, they were busting out of their space, and the demand for their products and service grew into areas further and further away from their shop that were simply too far for them to service.

They realized that they were doing something right and to keep the momentum, they needed to expand now, but they didn’t know how! They never thought their business would be so successful so fast, and now they need a solution… FAST!  Opening up other company-owned locations is not an attractive option for them for several reasons. Not to mention they do not want to have to manage more employees or worry about the Affordable Health Care requirement in the future (learn how the Affordable Health Care Act affects franchising).

Does this sound like any business that you know? Many business owners (like our flower shop) don’t always think of expansion when they first open their doors. So it is important for all business owners to know that even with just one location, franchising is a way to grow (read more on the topic of needing multiple locations in order to franchise)!

Benefits of Franchising

Franchising creates a ready-made business for aspiring entrepreneurs. Franchising has several key benefits when it comes to expansion including (but not limited to):

  • More locations can be opened at a faster pace;
  • Franchisees take on the responsibility for generating the business, including all financial, managerial and liability expenses;
  • All franchise locations must adhere to the same processes, methods and procedures while operating the business;
  • If there is more than one company-owned location, there is always the option to sell it as franchise later; and
  • It is common to promote franchise ownership with employees rather than losing them to your competition (check out our article on the other benefits a business owner can experience when franchising).

Beyond Expansion

Once business owners explore franchising as a vehicle for growth, they realize that there are many other benefits, such as Brand Recognition, Increased Earnings and the most important benefit, Loyalty (find out what a business owner gets out of franchising). Yep, no doubt franchising is Powerful!

So when you are out and about patronizing your favorite “Mom & Pop” businesses, ask them if they have ever thought about franchising as a way to grow their business. Send them to The Franchise Maker and we will put all the pieces together for them so they can offer their business as a franchise opportunity, not just in their area, but nationwide!

Franchising is a Way to Grow!