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Franchising is About a LITTLE of a LOT, Rather Than a LOT of a LITTLE!

As a business owner, you are on a continual search for ways to improve your bottom line (i.e., increase sales, increase profits, reduce costs, etc.). When the idea of duplicating your business and adding locations enters the equation, more than likely you look at the numbers and try to make a determination as to whether it makes sense or not.

Open More Locations Myself or Let Someone Else Do It?

So you think to yourself, “Should I open more locations? What is the best way to do it? Own and operate them myself or let others own and operate them? What will create generational wealth in the long run?”

These questions are not uncommon (read about franchising versus opening more locations). In fact a business owner called us recently and said, “I want to franchise my business but I don’t think it’s going to be worth my time unless I can get half a million dollars per franchise location each year.” It is apparent that this business owner had unrealistic expectations (especially given the nature of his business). Oddly, he indicated that he was only looking to grow to a handful of locations. When asked why he doesn’t just open more company-owned locations, he replied, “I do not want the headache.”

Setting Expectations

Would you rather have a LOT of a little  OR  Would your rather have a little of A LOT?

In simple terms, would you rather get a lot of money from a few locations OR get a little less from many locations (in some cases hundreds or maybe thousands)? The idea of franchising is about quantity: getting your business out in as many markets as possible and having lots of locations (learn where should you franchise). Therefore, getting a little less per location when there are lots and lots of locations typically results in more money in your pocket.   

A Little Goes A Long Way

But wait Johnny, there’s more! It’s important to remember that it is not just the initial franchise fee and royalties that you’re making from franchisees (take a look at “Understanding Franchise Fees and Royalty Fees“). Whether you get a percentage of gross revenues or a flat fee each month, there are tons of other ways you can generate income from franchising (read about other ways to “How to Make Money Franchising My Business“).

Your goals are unique and so are your aspirations. When it comes to expansion, it really depends on how aggressive you want to be in your growth. If you just want a handful of locations close to you, then franchising is not for you. Do you:

  • Offer a product and/or service that is a game changer?
  • Want to roll out your business in other markets without owning and operating each location?
  • Subscribe to the notion that getting some type of ongoing royalty is better than nothing at all and getting even a modest royalty from a LOT of business owners is better than trying to get a large royalty from just a few… which will yield greater wealth?

If you nodded in agreement when reading this or shouted “Yes, Yes, Yes!”, then franchising may be an option for you. Call us directly at 1-877-615-5177 and we will answer ALL your questions and help you determine if franchising your business is really right for you.

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