While franchising a business provides numerous benefits and has the potential to catapult a business into mainstream society, depending on a person’s perspective franchising can mean different things for different people. For example franchising has a different meaning for a business owner (like you) compared to an entrepreneur who buys into a franchise. Regardless of perspective, franchising (and if franchising is done right) creates a positive impact for everyone, on our economy and in our culture. So let’s explore what it really means to franchise a business.
Growth and Opportunity
Franchising a business means growth. When a business franchises it provides opportunity on so many different levels for so many different people. From the standpoint of the business owner, franchising is a vehicle for growth. Franchising is a way for the business owner to share their business with other entrepreneurs, train them on how to operate their business, help them get started, generate revenue and continue to coach them through challenges (for more on this topic read “What is My Role as a Franchisor?”). Furthermore franchising provides monies that the business owner would not otherwise have access to all of which is typically funneled back into the franchise system to help the entire system grow and maintain relevancy.
Beyond the benefits of franchising for the business owner (learn more about the “Benefits of Franchising“), franchising also means opportunity for people who have an entrepreneurial itch to own a business without having to figure things out on their own. The pure definition of franchising is the ability to take a business that’s already figured out, duplicate it and make it “stupid simple” for other people (entrepreneurs) to follow (to learn more see our article on, “What is Franchising?”).
Let’s face it, for anyone starting a business it is scary, risky and full of unknowns. Franchising is considered to be a safer and less risky endeavor for entrepreneurs simply because the franchising industry is regulated by the federal government (read more about how franchising is regulated) to protect such entrepreneurs from being lied to (fraud) and false claims about success (misrepresentations). For the entrepreneur, franchising means a roadmap on how to run the business, how to attract customers or clients and is basically a play book on how to avoid challenges. When executed correctly a franchise business can lead entrepreneurs to be more successful compared to if they tried to do it on their own.
A Positive Effect on Our Economy
Franchising is an economic motivator. Not only do new franchise businesses help generate commerce which in turn helps our economy; such franchise businesses also generate jobs. The entrepreneur who buys into a franchise will most likely need to hire employees thus providing jobs to people who may not have otherwise had work. To take things one step further some franchise systems allow entrepreneurs to combine their business with other concepts to make existing businesses that much more attractive. Historically franchise businesses have created a paradigm shift in the way services and even products are provided or simply by introducing a new product. And sometimes when a business franchises it has the potential to change lives.
To illustrate this point, it is not uncommon for a business owner to examine his or her industry, study his or her competition and use such knowledge to make improvements. The result is a reengineered, better, faster and more efficient business model. It doesn’t matter whether it is a type of service or a product; bottom line is that the business owner has mapped out a strategic more efficient way to operate disrupting the status quo. In other words, normalcy has been flipped upside down. At first there may be a learning curve but that is typically short lived and once embraced by the public this new way of providing a service or product has a positive effect on our culture.
Now You Know
Hopefully this brief article helps you understand what it really means to franchise a business (you can check out a brief discussion about how to franchise and the steps necessary). So ask yourself: do you have a business that is unique and different? Perhaps a new type of service or a new way of providing a service that makes you stand out? Although franchising brings growth, opportunity, boosts the economy and positively impacts our culture it is not for every business. If you have talked about wanting to grow your business or you feel you have what it takes to be the next big thing call us directly at 1-877-615-5177. We will gladly answer ALL of your questions to determine if franchising makes sense.
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- How Franchising Will Affect Your Future
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