Expanding the business you’ve built from the ground up is a compelling experience. There are a lot of factors you’ll need to consider before opening additional locations, and one of them is how to go about expanding. Many businesses have seen the advantages of franchising over traditional expansion methods, and here we’re going to explore why this technique could work for your business.
Accurate Franchising, Inc. has the experience and resources to help you grow your business through franchising. Our franchise consulting company is uniquely qualified in that we’ve walked in your shoes: we’re the only firm that owns and operates 10 franchise brands. Our firsthand experience, coupled with over 35 years of expertise, sets us apart and greatly benefits our clients.
We’ve helped countless entrepreneurs take their first steps into franchising, offering insights few other franchise development firms can match. Our team of franchise consultants puts our years of practical, firsthand franchising knowledge to work for you. We’ll assist you through every stage of the expansion process, whether you need to build a franchising system entirely from scratch or want to fine-tune an existing one.
What Are the Advantages and Disadvantages of Franchising?
When you’re considering how to go about expanding your business, you’ll want to know what the advantages and disadvantages of franchising are. Accurate Franchising, Inc. encourages our clients to take all aspects of their business into consideration and ask themselves the hard questions when it comes to whether or not franchising is feasible for them.
Let’s start with the disadvantages of franchising.
One of the first disadvantages is that you’ll give up some control over your business. While this may not bother you, some entrepreneurs prefer to maintain complete control over their brands. As a franchisor, you’ll need to relinquish some control over business decisions. But with a strong franchise agreement, you’ll be able to outline stipulations and rules to guide your franchisees and encourage them to continue business as you would.
Another disadvantage to consider is the potential for legal disputes. This becomes possible any time you enter into a legally binding agreement over the course of your business, and one that can be remediated by a well-crafted and lawyer-approved franchise agreement. Working with a legal team is an additional cost, but it can help save you from future headaches and further expenses.
One final disadvantage to consider is the regulations associated with franchising. More of a nuisance than anything, franchisors need to ensure their franchises are operated fairly and in accordance with federal regulations. Again, this is something a strong franchise agreement can ameliorate.
At the end of the day, many (if not all) of these disadvantages can be resolved by working with a professional franchise consulting company like Accurate Franchising, Inc. We provide an array of services, like developing a strong franchise agreement, to help you achieve your growth goals.
Onto the good news: the advantages of franchising!
Expanding through franchising allows you to broaden your business portfolio while saving time and effort. When you work with Accurate Franchising, Inc., you can leverage the work you’ve already done and take it to the next level by duplicating your business model, thus adding new locations without the time and expense of opening them on your own.
Franchising grants you the potential to expand with less debt. Turning your business model into a franchise opportunity grants you recurring revenue without the need to invest in new opportunities. While it may take some time and capital to start, franchising affords you the opportunity to save on expansion logistics and make money in the form of franchise fees. These fees feed into your available capital instead of having to take on more loans.
When you franchise instead of employing traditional expansion methods, you’ll replace managers with owner-operators. Franchise owners are motivated to work hard as they’ve invested in the business and have a stake in its profits. This allows franchisors to focus on the growth of their business while the franchisee manages day-to-day operations, human resources, and administrative tasks.
In terms of risk and liability, franchising makes expanding more efficient. Through franchising, you’ll be able to expand without an increase in risk and without adding more obligations to your plate. With the franchise owner’s name on the location’s deed, the business becomes less liable.
Another advantage of franchising is seeing your brand awareness and recognition increase. With additional locations, you’ll be able to reach multiple markets and increase your customer base, leading to more profits.
Should You Consider Business Acquisition or Expansion?
As you contemplate growth strategies, know that going the company-owned route is a completely different growth strategy from franchising. If you can afford to self-fund your business growth and assume 100% of the risk, your best option is to grow corporately. But for many business owners, this isn’t a feasible option.
While it’s important to consider all your options, expanding your business through franchising versus business acquisition or expansion is nearly always more cost-effective and requires less time and energy than adding corporate locations.
If you’re ready to expand your business by franchising, Accurate Franchising, Inc. is here to serve you with a wide range of development services. As part of our mission to build long-lasting relationships, we work closely with you to build a customized plan that meets your needs and budget. Let us help you take the brand you’ve spent years building and turn it into a franchise system with endless potential.
Contact us today to learn more about the advantages of franchising your business with Accurate Franchising, Inc. and the different development services we offer throughout the franchising process!