As you are thinking about franchising your business one of the questions you are more than likely to have is where you should franchise. You may be wondering when you first start franchising if you should stay within your city, your state or immediately go nationwide. The strategy of where you should franchise your business is really contingent on a variety of different factors such as: how aggressive you want to be to market and advertise for franchise prospects; your growth goals; where you are able to source products (if applicable); how complex the build out; and most importantly the type of business that you are franchising (particularly what it takes to execute your business and maintain consistency). Let’s explore a couple of these factors right now.
How Complicated is the Business You Want to Franchise
Is your business complicated or simple to operate? We can define complicated businesses as ones that have a lot of different elements to it. This also means that in order for your business to be successful, the products and/or services that are offered must be done in a certain way and in a specific sequence. If things are done out of sequence, ask yourself if that could create problems with quality and consistency (learn about business format franchising and what it means when it comes to fostering unity). An example of a complicated type of business is food service such as a restaurant that has a variety of different menu items and uses specific recipes all of which is complemented with a certain level of service to round off the customers’ experience. In a restaurant or food service business typically there is greater emphasis on quality and consistency when it comes to taste, texture and presentation of all the products (learn more about how we elevate your concerns if you are franchising a restaurant or food service business). If a process is not followed correctly or in the right sequence, more than likely the outcome is a bad tasting food.
If your business has a lot of different elements to it that ultimately affect how the product or service is being presented or performed then it makes sense to award your first few franchises within driving distance from your existing business. That way you can closely monitor how the products are being prepared and the services are being executed; and you can be there more frequently to catch and correct any inconsistencies (all of which will help you fine-tune your training and duplication process for your next generation of franchisees).
A Simple Business Not as Many Moving Parts
On the other hand, if you have a less complicated type of business (like for example a service type of business that does not have as many elements to it), it is typically less obvious if a process is not followed exactly or if the sequence of tasks when performing services is out of order because no matter what the result is the same. While quality and consistency are still very important, if something goes wrong it is not as pronounced as in a more complicated type of business. An example of a less complicated business may be an auto detailing business. If you are franchising an auto detailing business while you may have developed specific processes on how to detail different types of vehicles it may not matter as much the sequence in which each task is performed because the end result is a fully detailed vehicle. While service businesses are procedural in nature there is a bit more margin for error when it comes to the sequence of how the services are performed. Keep in mind this is not always the case with service businesses. Some service businesses may require a license and have regulations on how each task is to be performed compared to other service businesses (learn about franchising a business that requires a license). If you have a business in which the sequence of how tasks are performed does NOT affect the end result, then you may have a bit more latitude to award franchises in other geographic areas right away.
Stay Local, State Specific or Go Nationwide
Our philosophy when it comes to where you should franchise your business boils down to what type of business you have and what is best for your future franchisees to succeed. Regardless of the type of business you are seeking to franchise, your goals are to maintain consistency and quality for your brand while striving to make your franchisees raving fans and become self-sufficient. A big component in achieving these goals is how you execute your franchise program and the training program you provide to your future franchisees (learn about our strategy when it comes to training). We encourage that when you first start franchising (regardless of your type of business) to award your first few franchisees within driving distance so that if you need to be there to support a franchisee, you could do so rather quickly. Technically speaking once you are approved offer franchises in your home state you are good to offer franchises locally, anywhere within your state or nationwide (read more about whether franchising is state specific). We encourage that when franchising out your business to proceed with caution and take into account the complexities of your business when determining how far away you award franchises.
Need help figuring it out? That’s where we come into the picture and your expansion strategy is all part of our franchise development process. We will identify a strategy that makes most sense for where you should franchise your business that results in maintaining quality and consistency to protect your brand. And for every franchise program we build (regardless of your type of business) we will address your rights to enforce your consistency and quality standards. Call us directly at 1-877-615-5177 and we will answer any questions about where you should franchise, our franchise development services and if you should even franchise.
- Is Your Business Too Simple for Franchising
- Why Choose The Franchise Maker to Help You
- Does it Make Sense to Start Franchising Your Business
- What is Your Role as a Franchisor
- What to Look for in a Franchise Development Company
- About The Franchise Maker
- Franchise Disclosure Documents
