Seven Signs You May Be Ready to Franchise Your Business
March 23, 2015
When we created Franchise Funding Group, it was because we knew there were awesome businesses out there that just needed the additional funding, expertise and support of a proven franchise development organization to grow their models on a national basis.
We also knew would-be-franchisors needed to be better educated on this subject. There are lots of misconceptions and miss-steps out there. Launching a franchise is not a get-rich quick thing. Not every business should franchise. It takes years of hard work before you can recoup your investment (money, time, effort) and most do-it-yourselfers never get beyond 10 to 15 units on their own. They don’t have a proven path to follow. And worse, they try to cut corners – like trying to save on legal fees – which can hurt you mightily.
So, whether or not you’re planning to work with Franchise Funding Group as your franchise development company, there are a few things you need to have sorted out before you can turn your business into a franchise. Here are the top seven signs you have potential to franchise:
#1: Your business is profitable and successful as it is now…
You worked out the issues and kinks.
It makes money year in and year out.
You have a proven, cash-flowing business that franchisees can invest in.
Your business will be the successful model for others to come.
# 2: Your business can be replicated and cloned – it is scalable for national expansion…
It not only works in your town, but can work regionally and nationally.
There is nothing that restricts it being successful.
You don’t have a unique location and you don’t have a superstar owner or salesperson driving ALL your results.
The system is what works – not unique personalities.
You the owner are NOT the “secret sauce.” Others can work the business model and get the same results.
The business is simple enough for others to learn and operate.
#3: You have systems in place that can be replicated and followed by others…
You have documented who you are and what you do. Unlike many entrepreneurs, you don’t have the operations manual merely in your head.
You have an operations manual covering every facet of the business from hiring, to training, to operations, to marketing, etc.
You can go away right now for a 4-week vacation and your business operates well without you being there making every decision, touching every transaction, and solving every problem…that’s when you know you have a systems-driven business.
#4: Your business is appealing enough for hundreds or thousands of people to own and run in their community…
Your business is profitable, in a good and growing industry, and the business is different, interesting and even possibly fun to own and operate.
Your franchise owners would be proud to tell their neighbors they own this type of business in this type of industry.
It has real sizzle and credibility...there is a real track record of success...the management team in place to run the franchise is credible and has the right experience.
You already have people asking you to let them franchise or license what you are doing now. Unsolicited offers are a great sign you have something special people want.
People do not want to by a typical job – they want to buy a well-organized and systematized business that spits out cash and is fun to own and operate.
#5: You are prepared to put significant energy, money and time into developing your franchise system…
Franchising can cost you hundreds of thousands of dollars to franchise even a simple business on your own and you may need additional financial resources from others like the Franchise Funding Group – dedicated franchise investors and strategic partners.
You’re able to take significant time away from your current operations to develop the franchise.
You’re willing to put lots of energy into your new franchise system – as much as you did when you started your business.
You have the intense desire and passion to franchise. Your heart is in it and you have a strong WHY that drives you.
You are willing to hire franchise experienced operators to help you develop and run your new franchise system because it is a different animal and industry than running a small business.
#6: You are ready to go from being a business owner to franchisor, which means you’re responsible for the recruitment, training, and support of hundreds of business owners…
In the beginning, until you hire others, you may wear multiple hats.
Instead of running your business, you’re ready to run a franchise business – focused on the care, success, support and development of your franchise owners.
You have the mindset of a recruiter and are ready to market to and screen franchise candidates.
You have the mindset of a trainer and are ready to teach people to learn and follow your operating systems.
You are a developer – coaching franchise owners and keeping them accountable for following the systems.
#7: You are willing to engage and pay for experienced franchise-law attorneys to help you with your legal filings….
You are ready to pay for the best, most experienced franchise-law attorneys.
You understand that your FDD (franchise disclosure document) can cost anywhere from $40,000-$100,000 or more depending on the complexity of your industry and business model and some different states have different requirements.
Franchise Funding Group can help you pay for that critical upfront legal investment.
Franchise law is highly technical and the industry is highly regulated, by the federal government and state governments. Engaging top-notch attorneys can help you avoid headaches and potential lawsuits.
If you have the grit and passion to turn your successful small business into a booming franchise, but you lack the experience and investment to accelerate that growth on your own, we’d encourage you to submit an application to The Franchise Funding Group. We are not consultants and we don’t charge fees – we are an experienced organization committed to partnering with small business owners to grow great franchise systems. The application is online here: http://www.franchisefundinggroup.com/#!request-funding/c3g8.
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