Is Franchising the Right Marketing Strategy for Your Business?

It is widely known that franchising is one of the most highly leveraged business systems available for growing companies. It is to be used by companies and individuals to expand their businesses faster than normally possible under the company owned store or branch method. Because franchisees make the capital investment for each location, the franchisor is able to organize and establish a regional or national expansion at considerably reduced costs. In some cases, the franchisor can often set up an entire franchise program for less than the cost of opening an additional store or branch.

Further efficiencies are gained by having an owner present at each franchised location. Because the franchisor is not directly responsible for the bottom line performance of each unit, most of the daily management hassles are eliminated. The franchisor is free to concentrate on developing the business rather than managing the daily activity at each location. It is also a known fact that franchisees average 10% higher sales and 5% to 10% lower expenses than comparable corporate units because it is their investment.

Over 40% of the retail sales volume in the United States comes through franchises and yet only 8% of those businesses are franchised. Franchising is a proven tool to capture market share which typically increases profits because it gives the business owner three distinct advantages:

1. A name brand identity
2. A system of doing business successfully
3. A support structure which allows franchisees to be in business for themselves but not by themselves

Franchisees are able to establish their businesses with minimal risk. Franchising as a whole has a 92% success rate. Franchisees are attracted to these types of programs and will look to the company that can best demonstrate a good track record, competent management and a good training program with systems and support.

With all the great things about franchising, it still is a commitment to the new franchisor. You will need to be committed to serve and support your franchisees with superior systems and staff. They become your new customers. It

 will allow you to achieve financial success in a bigger way than ever possible in the quickest time frame as you follow the old saying, “if you help enough people get what they want you will get what you want.” If you have the desire to help others become successful in your business, then franchising may be the right strategy for you.

International Franchise Solutions assists your organization in structuring all phases of your franchise program.  As a strategic partner International Franchise Solutions will work side-by-side in all aspects of your business to help you succeed in your commitment to franchising.

Take Action now!

Is your business:

Original?

Duplicatable?

Profitable?

If you believe that your business meets these three criteria and would like further evaluation of your business to determine whether it is franchiseable or not, click here. One of our Business Development Advisors can quickly analyze your business to determine the potential.