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FRANCHISE vs. COMPANY OWNED
International franchise advising firm with offices worldwide representing franchisors in over 80+ countries
Comparing Growth Strategies:
Franchise vs. Company Owned
You’re a successful business owner with a strong company that is primed and ready for growth. As you contemplate different growth strategies, two come to mind: franchise and company-owned. These two growth strategies are completely different, so whichever you choose will impact how you run your business.
“Should I Grow My Business Corporately or Consider Franchising?”
Our answer shocks most people when we say, “If you can afford to grow corporately, then you should do that! It is 100% risk and 100% reward”. In basic terms, if you can afford to continue to self-fund your business growth and assume 100% of the risk, then we think it’s best that you continue to do that. But the truth is, most business owners simply cannot afford to self-fund multiple locations or maintain the infrastructure to grow outside of their own city.
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- How much would it cost to open another location or market for your business?
- How many locations would you like to open in the next five years?
- What’s the total cost of the amount above?
- Do you have the time, money, resources or staff to manage that process?
After answering these questions honestly, you may find that expanding your business through franchising will be a good fit for your business. Growth through franchising is nearly always more cost-effective and requires less time and energy than adding corporate locations.
Benefits of Starting a Franchise Vs. Corporate Owned Growth
FRANCHISING
- Bring your business to different areas around the country or the world
- Manage the company with a lighter hand, leaving day-to-day duties to franchisees
- Earn money through royalties
- Grow steadily and gradually
CORPORATE OWNED GROWTH
- Maintain control over every single aspect of the business
- Enjoy all of the profits
- Grow slowly, ensuring the optimal conditions for your business
- Spend less time training and developing materials
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As you can see, there are many advantages to either growth strategy, and at Accurate Franchising we can help you decide what is best for your company.
Want to find out for sure if franchising is a good strategy for you? Please click here to complete our quick online franchise feasibility questionnaire.
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