Why Franchise Your Existing Business
Why Franchise Your Existing Business
And then there is the need for additional capital. It costs a lot of money to open another location. Sure you have been successful, but little Johnie’s soccer costs a lot of money too. Perhaps you could borrow the funds, but that adds additional expense which eats into your profit margins. So how do you expand?
That is where franchising your business comes in to play.
With franchising you can utilize the talent and capital of others. When you sell your franchise rights to a franchisee, you will be passing on your proven business model. Included with that will be everything that is needed for the franchisee to be successful. You can grow as quickly or as slowly as you wish by controlling the number of new franchised units every year. You will receive an upfront franchise fee (something in the $10,000 to $50,000 range is customary, but I have seen them as low as $100 and as high as $100,000 or more). For the most part these franchise fees do nothing more than cover the costs associated with advertising, recruiting, and training any new franchisee. There is really not a lot of profit made at this point. However, once the franchisee is operational, you will also receive periodic royalty payments from the franchisee. These royalty payments are where the franchisor really makes a profit. A typical royalty payment might be 5% of gross sales.
As you can see it is in your best interest to make sure that any franchisees are successful. You must choose potential candidates wisely. You need to make sure that they have the ability to succeed by using your proven business model. They must have the capital, experience, and probably most importantly, the desire to succeed. When they succeed, you succeed.
So don’t be afraid of leveraging the talent and capital of others for your benefit. Done right, franchising can be very rewarding!
Why Franchise Your Existing Business - To learn more about this author, visit Tom Parsley's Website.
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Let’s say that you own your own pizza business. You have been working very hard for many years to establish your business. Your efforts have paid off. You are very successful. Except for the long hours that you have worked, your wife and kids are very happy. It is a good life. Yet something is still missing. You still have that burning desire to grow and expand your store by adding additional locations. And more income would always be nice! But you know how many hours you already spend working in the store. You just don’t know where you could find the time to devote to additional locations. You know that absentee ownership does not work very well. To be successful one has to be there watching the store working many hours. And you can’t be in more than one place at once. If only you could clone yourself!
And then there is the need for additional capital. It costs a lot of money to open another location. Sure you have been successful, but little Johnie’s soccer costs a lot of money too. Perhaps you could borrow the funds, but that adds additional expense which eats into your profit margins. So how do you expand?
That is where franchising your business comes in to play.
With franchising you can utilize the talent and capital of others. When you sell your franchise rights to a franchisee, you will be passing on your proven business model. Included with that will be everything that is needed for the franchisee to be successful. You can grow as quickly or as slowly as you wish by controlling the number of new franchised units every year. You will receive an upfront franchise fee (something in the $10,000 to $50,000 range is customary, but I have seen them as low as $100 and as high as $100,000 or more). For the most part these franchise fees do nothing more than cover the costs associated with advertising, recruiting, and training any new franchisee. There is really not a lot of profit made at this point. However, once the franchisee is operational, you will also receive periodic royalty payments from the franchisee. These royalty payments are where the franchisor really makes a profit. A typical royalty payment might be 5% of gross sales.
As you can see it is in your best interest to make sure that any franchisees are successful. You must choose potential candidates wisely. You need to make sure that they have the ability to succeed by using your proven business model. They must have the capital, experience, and probably most importantly, the desire to succeed. When they succeed, you succeed.
So don’t be afraid of leveraging the talent and capital of others for your benefit. Done right, franchising can be very rewarding!
Why Franchise Your Existing Business - To learn more about this author, visit Tom Parsley's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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