{"id":818,"date":"2014-07-18T15:50:08","date_gmt":"2014-07-18T15:50:08","guid":{"rendered":"http:\/\/thefranchisemaker.com\/learningcenter\/?p=818"},"modified":"2025-08-17T23:04:53","modified_gmt":"2025-08-17T23:04:53","slug":"does-franchising-a-small-business-mean-you-have-to-lose-control","status":"publish","type":"post","link":"https:\/\/www.thefranchisemaker.com\/learningcenter\/does-franchising-a-small-business-mean-you-have-to-lose-control\/","title":{"rendered":"Does Franchising a Small Business Mean You Have to Lose Control?"},"content":{"rendered":"

You are a hardworking entrepreneur, who is running a successful small business. Your customers are impressed with your business and you are often asked about more locations. However you have some real reservations about expansion and are particularly worried that expansion may mean losing control of what you started.\u00a0 Does franchising a small business mean that all control is lost?\u00a0 Let\u2019s explore this for a few minutes.<\/span><\/p>\n

Typically, in a situation like described above, you are probably already operating at high capacity and are handling every aspect of your business yourself (hiring, training, sales, marketing, accounting, etc.). Now you are at the point where you are thinking about franchising your business<\/a>. You are excited but have doubts about giving up control. Get ready, we are going to show you why when your franchise it does not mean losing control!<\/span><\/p>\n

Franchising Means Expansion And Control!<\/em><\/strong><\/span><\/h2>\n

Franchising a small business does NOT mean a loss of control. In fact, when the franchise structure is built (and it is done correctly), control by you (the franchisor) on how the business must be operated is inherently part of the relationship (take a look at a few things to take into consideration when structuring a franchise<\/a>). In other words, if Timmy wants to play ball, then he must follow the rules; otherwise, there are consequences. Of course, there is a fine balance because we do not want to make the franchise too stick or draconian. Ideally you want a franchise program that maintains your brand standards and also gives the franchisee some flexibility. That is where we come into the picture.<\/span><\/p>\n

The Rules of the Road<\/span><\/h3>\n

So what might be a couple of \u201cfears\u201d you may have about losing control? Here are couple common fears that most business owners have when thinking about franchising. See if these are familiar to you.\u00a0<\/span><\/p>\n

\u201cI have trade secrets that I don\u2019t want to give away.\u201d<\/span><\/em><\/p>\n

Trade secrets can be proprietary strategies, methods, processes and procedures you have developed.\u00a0 Trade secrets can also be exclusive relationships you have nurtured that may give you leverage in the marketplace. Your trade secrets are all maintained in confidence when you franchise. When we prepare the documents that outline the rules of the road (known as\u00a0 the Franchise Disclosure Document<\/a>), there will be specific language that holds the franchisee accountable for maintaining the secrecy of your trade secrets followed you consequences if your trade secrets get out. <\/span><\/p>\n

\u201cWe\u2019ve spoiled our clients with our high level of service and quality standards that\u2019s hard to replicate.\u201d<\/span><\/em><\/p>\n

Your service standards and the level of quality for what you do are what we call your “brand standards”. This could include specific steps that must be followed to provide the type of experience that you want your customers to have on a consistent basis.\u00a0 Your probably thinking it is hard enough to get my staff to do these things consistently.\u00a0 How can you make sure a franchisee is maintaining your standards? Easy, we will build into your franchise program (take a look at the Elements of a Franchise Disclosure Document<\/a>) a triple-check system\u00a0that also allows you to pop in and perform site evaluations. Keep in mind, you will be teaching your franchisee these brand standards and it is their responsibility to manage their day-to-day operations and manage their staff to confirm your standards.\u00a0 \u00a0<\/span><\/p>\n

So far you have seen us talk about the Franchise Disclosure Document as a rules of the road document. Which is a true summation of what it is about because what is written in that document lay the foundation of the entire relationship you have with your franchisees. <\/span><\/p>\n

This document does not dive into the specific operational aspects of your business (that is where your franchise training comes into play) but is a beefy document that outlines your deliverables as a franchisor and the responsibilities of your franchisee while operating your business. Detail is important and there are specific things must be addressed in a particular manner. But not to worry, because when we work with you during the franchise development process<\/a>, we hold your hand throughout the entire time while we put it all together. You are part of every decision. We will educate you on the common pitfalls of franchising that could get you in trouble and share with you best practices in the industry all while coaching, mentoring and teaching you how to think like a franchisor.\u00a0 \u00a0\u00a0<\/span><\/p>\n

Choosing the Right Operator<\/span><\/h3>\n

Let’s not forget that you have control over who you pick to be a franchisee. It is important to understand that as a franchisor you will \u201caward\u201d franchises to the right applicant, not simply \u201csell\u201d a franchise to anyone who has the money to do it. <\/span><\/p>\n

So it is in your best interest to pick the right franchisee. As a franchisor you will need to know how to look for someone \u201cjust like you\u201d, who will embrace your business and its philosophy, which, in turn, will determine if the operator is a huge success in their own market (check out our article on the topic of “Finding the Perfect Franchisee<\/a>“).\u00a0<\/span><\/p>\n

It’s All in How Your Franchise Program is Built<\/span><\/h2>\n

There are many steps to franchising<\/a> and our mission is help make what can be a complicated process easy, for business owners like you. The linchpin of your franchise program is how it is built. This will help dictate your success or failure as franchisor. Every element of the franchise relationship needs to be meticulously thought through and detailed out in such a manner so that if you ever needed to enforce your brand standards, you will have teeth to do so.\u00a0<\/span><\/p>\n

So can you franchise and maintain control of the things that are most important to you?\u00a0 Absolutely YES! We actually listen and take into consideration all your concerns when building out your franchise program (learn about our strategy when franchising your business<\/a>). We work with you to create a customized franchise package that protects you and represents your best interests.<\/span><\/p>\n

So if you are an entrepreneur with a tight grip on your business and really like the idea of franchising without losing control, you can now be at ease.\u00a0<\/span><\/p>\n

When we chat and learn about your business, we will help you understand how you can maintain control and your role as franchisor<\/a>. If you want to learn more about how you can maintain control while franchising or how it all pertains to your specific business, call us directly at 1-877-615-5177<\/strong><\/a> and we will be happy to answer your questions.<\/span><\/p>\n

\"\"<\/a> GET STARTED!<\/a><\/p>\n