How to Expand a Franchise Business
- 1. Add More Units Some of the most resoundingly successful people in this country are multi-unit franchise owners. ...
- 2. Become a Top-Producing Franchisee ...
- 3. Help Your Franchisor Grow ...
- 4. Join the Owner’s Advisory Committee ...
- 5. Take Advantage of Leadership Opportunities ...
- 6. Strategically Use Financing ...
- 7. Prepare for Growth ...
- 8. Add Another Brand ...
- Add More Units. ...
- Become a Top-Producing Franchisee. ...
- Help Your Franchisor Grow. ...
- Join the Owner's Advisory Committee. ...
- Take Advantage of Leadership Opportunities. ...
- Strategically Use Financing. ...
- Prepare for Growth. ...
- Add Another Brand.
How long does it take to start a franchise?
The whole process from initial conception to selling your first franchise takes anywhere from 90 - 120 days when done correctly. Setting up a franchise is a valuable way to grow your business and can be well worth the few months of grind necessary to set it up correctly.
What is the FDD for franchising?
Therefore, you must create a legal foundation for your franchise in the form of a Franchise Disclosure Document (FDD). The FDD contains twenty-three section s that comprehensively break down the nature of the franchisor-franchisee relationship, ...
How to get better protection for your trademark?
To get better protection for your trademark, you need to register it with the USPTO or the United States Patent and Trademark Office. Though this improves your protection from trademark infringement, it doesn’t guarantee 100% protection.
Company-Owned Operations
- The most obvious expansion method for many companies is the development of additional company-owned outlets. This strategy offers several advantages over franchising. Perhaps most important, company-owned growth allows owners to keep 100 percent of each unit's profits rather than sharing those profits with franchisees. It also offers increased cont...
Business Opportunities Or Licensing
- The advantage to the business opportunity (biz opp) route is that in many cases, the licensor doesn't have to comply with the FTC's franchise disclosure regulations, which saves money and makes the sales process less complex. That said, a biz opp may still have to comply with franchise disclosure laws in some states and will need to comply with the patchwork quilt of biz …
Trademark Licenses
- The second option available to those looking to expand through third parties is the use of a trademark license. For those of us without famous names, trademark licenses are exceptionally difficult to market—especially if we're branding a business instead of a product. After all, if someone is going into a business, it's the system of operation -- the recipes, the advertising, the …
Dealerships and Distributorships
- This format involves the provision of products to a third party at a bona fide wholesale price for resale, a tried-and-true means of establishing a distribution channel. Of course, this method is only appropriate for manufacturers and wholesalers. But be careful: Selling equipment, displays, and other items that aren't intended for resale-- even if not sold at a profit -- will trigger the fee eleme…
Agency Relationships
- In an agency structure, an independent salesperson sells a service on your behalf -- so again, this form of relationship is only appropriate for companies for which fulfillment of the contract is provided by the corporation and not by the agent. The easy distinction here is that all money flows downward (from corporate to the agent) and not upward (from the franchisee to the franchisor)…
Joint Venture
- A joint venture partnership is characterized not by fees but by sharing both equity and profits. So, for example, your joint venture partner might put up 70 percent of the money and work at a salary that was below market for one year. You'd put up 30 percent of the capital, sign personally on a bank note, and provide your intellectual property. Based on your negotiations, you might end up i…