Should I franchise my business?  In my over three decades as a franchise consultant, I am often asked about franchising your business. In this blog, I will address a key issue to consider when deciding about franchising your business.

When first exploring whether franchising your business is a good idea, there are two fundamental questions: (1) Will you make enough money to make it worthwhile? (2) When franchising your business, will your Franchisees generate sufficient funds to succeed? If you can answer both these questions “yes”, then franchising your business may be a good bet for you.

When considering franchising your business, first understand that there are literally thousands of different franchise opportunities. These different Franchisors involve different investment levels, skill sets, customer types, products and/or services and profits. In addition to financial benefits, many franchises provide emotional incentives.

Remember when franchising your business, your Franchisees are likely to have varying goals, skills, needs and motives. Some franchises require an initial investment in the millions of dollars and others $25,000 to $50,000. Some franchise opportunities generate annual profits of a quarter to half million dollars and others $10,000 to $20,000. At both ends of the franchise spectrum, the Franchisees are happy because they are meeting their individual goals.

When franchising your business, the following factors may impact your ability to sell franchises and the success of your individual franchise owners:

  • The initial investment required to launch the franchise

  • The industry

  • The ongoing funds necessary to operate the franchise

  • The annual anticipated gross revenues

  • The projected profits

  • The number of competing franchise programs

  • The background, skills and certifications your Franchisees will need

  • The amount a person with this background, skills and certifications typically earns

  • The level of competition your Franchisees will face

  • The amount of time required to operate the business

  • The requirement for Franchisees to operate multiple locations

  • What benefits other than financial your franchise program offers

  • Other issues based upon the specific franchise program

Franchising Your Business, Be Your Own Boss

When franchising your business, never forget that the opportunity to “Be your own boss” is a powerful incentive.

In addition, franchise programs may offer the pride of providing a quality product, giving back to your community, the opportunity to travel, doing something you love and many other emotional benefits.

If you would like to speak with one of our franchise consultants about franchising your business, please don’t hesitate to call (706) 356-5637.