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.
Here are several questions that we like to ask our clients when they ask the question above:
- 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 | Corporate Owned Growth |
|---|---|
| Bring your business to different areas around the country or the world | Maintain control over every single aspect of the business |
| Manage the company with a lighter hand, leaving day-to-day duties to franchisees | Enjoy all of the profits |
| Earn money through royalties | Grow slowly, ensuring the optimal conditions for your business |
| Grow steadily and gradually | Spend less time training and developing materials |
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.
blog / latest news
Everything You Need to Know About Franchise Development from Site Selection to Construction Management
Deciding where to set up your franchise is one of the most important choices you will make during the franchise process. After all, your location will determine the amount of foot-traffic you receive, as well as how convenient it is for customers to stop in. Because this is such a crucial aspect of franchising, we…Read more
Why Your Franchise Sales are Slumping and how Accurate Franchising Can Help
If you’re a franchisor and your sales have been slumping, it’s probably time re-evaluate your strategy, and enlist some franchise development assistance. Franchise development covers many of the aspects of franchising that prospective buyers pay attention to, helping you present your brand not just as a business, but as a potential franchise partner. Accurate Franchising,…Read more
How Much Will It Cost to Franchise My Business?
Trying to answer the question “How much will it cost to franchise my business?” Accurate Franchising, Inc. might be able to help. The answer will be different for every business owner, but in many cases, the cost is well worth the potential profit to be gained. Let’s take a look at a few of the…Read more
3 Questions That All Business Owners Need to Ask Themselves Before Franchising
If you’re asking yourself, “How do I franchise my business?” you’ve come to the right place. Accurate Franchising, Inc. has helped dozens of franchise brands to get off the ground and improve their performance throughout our years in business. We’ve learned from experience, not only from helping other franchise brands but through franchising ourselves –…Read more
Trust the Experts: When You Work with Accurate Franchising, You’re in Good Hands
IF you’ve been researching how to build a franchise, you’ve come to the right place. At Accurate Franchising, Inc., we have decades of experience in the franchise business, and we’ve helped dozens of franchise brands to get started from the ground up and strengthen their businesses. You’d be hard-pressed to find any franchise experts with…Read more
A Strong FDD is Vital in the Franchise Industry
What Is the Franchise Disclosure Document and Why Do You Need it to Franchise Your Business? When you franchise your business you’ll need to have a number of resources ready for your franchisees, and the franchise disclosure document (FDD) is perhaps the most important. The FDD spells out everything investors need to know about your…Read more
How to Grow My Franchise with Simple Techniques
How to Grow Your Franchise without Missing a Beat Trying to grow your franchise on your own can feel downright impossible. Even if you have a great franchising concept, you might not be sure where to start. Conversely, you might have started the process on your own with disappointing results. To succeed, franchisors not only…Read more
Accurate Franchising’s Biggest Strength Is Our Resources
Accurate Franchising, Inc. stands out from other business consultants because we’ve developed a host of resources specifically to help our clients franchise their businesses, and to improve upon the systems they already have in place. When you enlist our services, you’ll see how we utilize these resources to guide us as we work together to…Read more