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.
Also, take in consideration the following Pros and Cons
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.
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.
International Franchise Association
Small Business Administration
The American Association of Franchisees and Dealers