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
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 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, 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
“Is my business franchise-ready?” If you’ve been asking yourself this question, chances are you’re ready to expand your business by turning it into a franchise brand. Franchising is a great way to grow your business: Franchisees assume the financial burden of opening new locations, while you support them by providing them with a ready-made business…Read more
There are many ways a franchise consultant can help businesses reach their full potential. Are you thinking about franchising your business? Do you already own a franchise brand but are having trouble achieving steady growth? At Accurate Franchising, Inc., we have years of experience developing franchise offerings and finding qualified leads. Our franchise consultants come…Read more
Franchising your business is a monumental step in your career, helping you build a bigger business without having to do all of the work yourself. It also allows you to expand domestically or internationally, to a variety of locations, while you take a more hands-off approach. Growing your brand through others is a great way…Read more
Franchising your business is a great way to expand without the added stress of having to run each individual location yourself. At Accurate Franchising, we’ve seen time and time again how beneficial it can be to convert your independent business into a franchise, and we’re the perfect partner for guiding you through the process. From…Read more
It’s no secret why starting a franchise has proven so popular. It allows you to both simply your business as well as put you in a good position to expand. However, there are several challenges involved, and those challenged often easily deter prospective franchisees. You might be wondering what steps you can take to ensure…Read more