Start a Franchise

The Small Business Administration defines a franchise as "a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business." When franchising a business, the most widely used model is called a business format franchise. Starting a franchise under this model involves the franchisor granting a franchisee the right to market goods and/or services in a specified territory using the franchisor's trade name and system of operation in exchange for payment of a franchise fee and usually, ongoing royalties. To assist the franchisee in starting a franchise, franchisors provide support, which may include site selection assistance, initial training, approved sources of supply, and advertising and marketing programs.

Many established national and international companies have chosen to franchise their business due to the fact that franchising provides the opportunity for maximum market penetration with minimum financial risk to the franchisor. At the same time, a franchise system permits the franchisor to maintain maximum control over the individual franchise locations thereby protecting the reputation and system of the franchisor. Franchisees benefit by investing in a proven system of operation that eliminates many of the pitfalls associated with starting a business.

The Unique Attributes of Franchising

Small businesses can expand a number of different ways. The most common methods of expansion require placing substantial capital at risk. Those methods include competitive business ACQUISITION, establishing DISTRIBUTORSHIPS, LICENSING, INDUSTRY COOPERATIVES and of course ORGANIC expansion by slowly carving out new marketing routes. 
Of all the options available to the small business owner FRANCHISING is the only method that offers all of the following attributes:

  • Virtually No Capital Outlay for Expansion - franchisees pay for unit growth
  • High ROI - low capital investment yields high return-on-investment
  • Low Risk - franchisees assume full risk for their unit
  • Limited Liability - franchisees assume financing and leasing responsibility
  • Fastest Reoccurring Revenue Growth - due to multiple revenue streams
  • Motivated Location Management - individual unit ownership creates greater focus
  • Minimal Operations Requirement - day-to-day operations at the unit level
  • Collective Purchasing Power - all units benefit from the collective
  • Brand Confidence - consumers buy from names they know

There is strength in numbers. Franchising offers you a rapid and inexpensive method for business growth and competitive dominance. If your business has an immediate local advantage you should strike while the iron is hot and franchise today.

Considering Franchising Your Business?

Franchising is the most effective way to quickly grow your business and INCREASE YOUR PERSONAL NET WORTH! Franchising allows you to quickly capitalize on your knowledge and experience while others fund new openings and distant operations. 

You may have asked yourself if franchising is the appropriate way to expand your business and brand. The fact is that there are specific indicators for a viable franchise business.

Indications Your Business Has Franchise Potential

  • You have at least one location currently in operation
  • Your business has been in operation for more than two years
  • Your customers or clients ask, "Is this a franchise?"
  • You have proven advertising and marketing programs
  • You have proven sales and marketing techniques
  • There is proprietary products, services, equipment within your business
  • Your business has a strong margin and is profitable
  • Your business operates by a prescribed process and procedure
  • You see improved economies of scale with each new location that opens
  • You have a trade name that has been registered with the U.S. Patent & Trademark Office
  • Your business has a good reputation among consumers and suppliers

If you answered "yes" to any of these indicators, you should seriously consider franchising your business.