Franchising Your Business

You built your business with dedication, hard work, learning – specially from mistakes to avoid – a business that you are proud of and are evaluating the next step to growth it. Is Franchising a good way to expand your successful business? Franchising is a great way to grow a business for some entrepreneurs but not for others.

"Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees). The business model is based in a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration", according to Entrepreneur®.

Global Franchise consultants are experts in distribution channels and licensing systems. But, before deciding whether to go or not to franchising, write down a briefing of your business for your own evaluation.

  • unique selling proposition
  • success ratio in your industry
  • credibility
  • integrity and commitment
  • public acceptance
  • potential for national adaptability
  • goods that are proprietary
  • profitability
  • organization
  • financial control
  • cash requirement
  • monitoring system
  • facts that exposed the business publicly

Also, take in consideration the following Pros and Cons


  • Franchises offer franchisors quick business growth primarily funded by franchisees.
  • Franchisors earn a certain percentage of each unit’s gross profit.
  • A franchise system’s expanded network can combine marketing and advertising power, as well as the ability to capitalize on new opportunities.
  • Hiring, unit operating expenses and lease arrangements for the new site are “typically” the franchisee’s responsibility.


  • Franchisors incur the expense of legal and regulatory fees, which may be impractical when a company is suited only to limited expansion.
  • Franchisors must invest considerable time and resources in the franchising process before realizing a profit.
  • Franchisors must set standards for attracting qualified franchisees and systems for closely monitoring all units in their networks.

The Legalities

Because of federal and state laws and regulations related to franchising and business opportunities, franchising a business involves considerable legal groundwork. This is critical, because following the letter of the law also lays the foundation for strong relationships between franchisors and franchisees. Experts advise hiring an attorney experienced in franchise law prior to starting the paperwork.

The Franchise Process

Here are a few of the basic steps in expanding your business through franchising. Specific details of the franchise process fluctuate from industry to industry and from business to business – but commonalities do exist.

  • Write a detailed business plan that includes a business history, current market analysis, company vision and financial projections.
  • Consult with Global Franchise before registering a trademark, hiring attorney, developing a marketing plan or corporate id, hiring and advertising agency, writing manuals and training programs. Laws and regulations vary from country to country, states and industries.
  • Register your trademark or service mark to protect against infringement.
  • Consult with a qualified attorney with expertise in franchising and intellectual property.
  • Complete legal documents in a thorough and timely manner.
  • Develop a marketing and advertising strategy that establishes a uniform company look and customer experience.
  • Write operating manuals and create a standardized training program.
  • Establish initial and ongoing support for franchisees, including maintaining continuous involvement and communication.
  • Develop a management team to help open new franchises and offer advice to franchisees about site selection.


International Franchise Association

Small Business Administration


The American Association of Franchisees and Dealers


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