Your lines are out the door, your demand seems endless, and you’ve crushed your bottom line each quarter. Expansion for your brand could be on the horizon, and now the question has emerged: do you franchise your business or maintain full ownership of your additional locations? As a franchise development company, we have evaluated the risks and rewards that come along both options and see a lot of value in the franchising experience. Discover some of the advantages that come along with a franchising development opportunity and why this style might be your best option to grow your business.
1. Outside Investments vs. Sole Ownership
While outside consultations and projections might tell you otherwise, the future is always unknown. Your service might build incredible demand and competitors who’ve expanded might see return as well — however, independent expansion assumes all the responsibility and all the risk. That means if circumstances occur that are out of your hands or directly impact your territories, you’ll see all the repercussions. Financially, this can be detrimental to a company’s longevity and is an inherent risk of traditional development.
But that doesn’t mean that expansion is out of the question — there are far more secure methods of building your brand and expanding your locations to interested markets. If you believe in your service, trust the demand, and know the process of building your business — you can share that with interested entrepreneurs who want to build their own dream. You can best ready your investors and educate them on every aspect of your brand by devising the proper training and support programs that put your business owners in the best position possible for the road ahead.
2. Earning Through Royalties
Although you’ll be opening your business to investors rather than keeping your expansion in-house, that doesn’t mean you’ll never see the fruits of your labor. As the franchisor, you’ll collect a royalty payment, which is an agreed-on percentage of gross or net revenue that is brought into your franchise territories. Our franchise development company will help guide you in understanding how to assess royalties through detailed evaluations of your business and its future franchise potential.
3. Franchisees Responsibilities
We understand passionate business owners and the attachment they have to their business — after all, it’s a dream that they have seen become a reality. However, there is a way to continue building that business without attempting to divide your focus between all of your territories. Part of your franchisor experience is identifying qualified leads that are primed and passionate to build a business under your brand. Once you hand off these locations and branding rights to your investors, you’ll be able to manage the business with a lighter hand and leave the daily operational responsibilities to your franchisees.
Would you like to know more about Accurate Franchising, Inc., our expertise as a top tier franchise development company, or more about the franchising experience? Please, contact us today!