One day you get called by a retailer or someone from a property management company who says they want to put your concept in their space. This type of call does well for your ego, gives you validation along with a sense of demand for your business. Then you realize, wait a minute I am being solicited. The call makes you think since this person thinks you should open more locations; then it must be a sure sign that you should franchise your business.
While we are not interested in taking the sting out of the excitement you experience when you get such calls, it is important to remember that the person who is asking you to open a location in one of their vacant spaces is different than someone who is wanting to start your business and run it themselves. Just because you are getting these types of calls from retailers or property management companies does not always mean you should franchise.
When you get such calls, keep in mind who you are talking with and ask yourself what does that person have to gain. This is really no different than someone cold calling businesses trying to convince them to lease a space in their building. And if you are already leasing space from the person or company calling you, ask yourself how long after you signed your first lease did they hit you up to open more locations. Yep you got it, this is nothing more than a solicitation. Since you are already leasing space from them you are basically already in their back pocket. Either way this experience brings up the idea of franchising (visit our main website to learn more about franchising your business). Let’s explore what are some of the more realistic signs that may indicate that you should franchise.
Is There a Demand for Your Business
Your business has been taking off and you are consistently busy. Perhaps you were surprised at how quick your business took off when you first started and your sales exceeded your projections. In fact, you have customers and/or clients who are so impressed with your business that they cannot stop talking about it (whether on social media, different review platforms or just by telling other people). All of this buzz surrounding your business has propelled your success. Soon it becomes apparent that the demand for what you are doing is so high that customers are literally driving from miles or hours away just to experience what your business has to offer. You see that there is a demand for your products and/or services regardless of geographic location and realize it could thrive in other markets (read more on scalability as one of the keys to successful franchising). If you are unsure of what really makes your business special, start thinking about what brings people to your business. The things that attract people to your business or what drives people to travel to your business are what make your business unique!
A Smooth & Efficient Operation
Consider how you run your business. Perhaps you have created a magic formula that makes your business run smoothly and efficiently. Your magic formula could be as simple as checklists, daily routines, how you buy products, customer service standards, how you hire employees (if applicable for your business) or how you perform services. You may have even experienced people already asking if you are a franchise because your business is so polished. If you franchise your business you will be responsible for teaching other people all of these different methods, processes, procedures, techniques and best practices you have created so that they can successfully implement the business in their market (more on your responsibilities as a franchisor).
A Unique Offering
Think about what your business offers. Do you have a unique product, service or piece of equipment that is the focal point of your business? This could mean that you created a new way to offer services or you rolled out a new product that in combination with your services makes your business one-of-a-kind (check out our article to find out if you can franchise just a product). Ask yourself why the demand for what your business offers is so high. Maybe it is because you have added a twist to something or put a unique spin on something common. You may also have bounced into something that could benefit existing businesses.
So if you are being solicited by a retailer or property management company to open another location in their space keep this piece in mind. When it comes to expansion, if any of these above points resonate with you, then maybe it is time to consider franchising. These are just a sample of attributes that could indicate if you should franchise your business. Call us directly at 1-877-615-5177 and we will be happy to talk with you to see if you are ready to seriously think about franchising and provide honest feedback.
- Other Types of Solicitations About Franchising
- Why Would Someone Want to Franchise
- How Many Locations are Required to Franchise
- Questions to Ask Yourself
- Can Any Type of Business be Franchised
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