If you think that your business is ready for expansion, one of the routes you may want to consider taking is franchise development. By franchising your business, you can grow your brand without taking as big of a financial risk.
However, franchising your business is a lot easier said than done. Because of how complicated it can be, you should consider using a franchise development company. But not every franchise development company is the same — many are profit-oriented, which means that they don’t actually care about your business and will squeeze every last penny out of franchising opportunities with no regard to the sustainability of your franchising business plan.
You’ll want to hire a franchise development company that will provide you with honest and accurate advice, and that will keep your best interests in mind. The following are four things to look out for when comparing franchise development companies to ensure that you find the right one.
1. Brutal Honesty
The first thing a franchise consultant should do is to sit down and go over the franchising potential of your business. Any consultant that jumps right to how they can go about franchising your business is most likely more concerned with short-term results — in other words, selling as many franchises as possible before your business collapses.
A good franchise consultant will identify the weaknesses in your business that could affect its franchising capabilities. In fact, if your business concept isn’t fit for franchising, a good consultant will tell you this. Sometimes, a service or product will only work in a specific area — and expanding through franchising will doom your business to failure.
2. Realistic Expectations
A franchise development consultant that tries to get you to buy into their services by promising you easy riches may not be the type of consultant you want to work with. Remember, you want to work with a consultant, not a salesperson. So the last thing you really want to hear is a sales pitch.
Make sure that when they talk about the process of setting up your business for franchising that they are setting realistic goals and providing you with a realistic outlook.
3. A Good Reputation
How do you determine the reputation of a franchise development company? First of all, you should be able to find reviews online for any business, no matter what services it provides. This is a good place to start.
Secondly, any franchise development company that puts effort into making sure that a business thrives and doesn’t just care about selling as many franchises as possible will be able to provide a list of clients that they’ve helped to franchise.
You can research these clients to see how their businesses have fared since they began franchising — and you can contact the owners to ask about the franchise consultant they worked with directly.
4. A Variety of Franchising Services
A good franchise development company won’t just try to sell franchises. They’ll offer a wide variety of services to help benefit the expansion of your business, as well as guide you through the franchising process.
Some of the services to ask about include franchise development, sales, disclosure, financing, real estate, marketing and operations services. The more they can tell you about what they can offer in terms of these services, the better off you’ll be working with them.
Deciding to franchise your business is a huge decision to make, and an enormous undertaking. Use these tips to identify a reputable franchise development company, and be sure to contact us at Accurate Franchising for information about our franchising services today.