how to franchise your exisiting business

How To Franchise A Business

• 1. Make Sure Your Business Is Ready to Franchise The first and most crucial step is to make sure that your business is ready to franchise. ...
• 2. Conduct Market Research ...
• 3. Estimate The Costs ...
• 4. Protect The Intellectual Property Of Your Business ...
• 5. Make A Clear Franchise Agreement ...
• 6. Find Potential Franchisees And Start Selling ...
• 7. Grow And Support Your Franchisees ...

Full Answer

How to turn your small business into a franchise?

• Set Realistic Goals. Franchising is more of a marathon than a sprint. ...
• Research Your Competitors. ...
• Develop Your Franchise Offering for Both Individual and Multi-Unit Sales. ...
• Make Sure Your FDD Is Compliant for Every State. ...
• Learn Franchising and Get Involved in the Franchise Community. ...

How to succeed in franchising your business?

• The success of any business is linked to the level of enthusiasm you bring to the job.
• Enthusiasm brings a level of excitement and energy to the operation that everyone can feel-including your customers and staff.
• Let your staff in on the fun. Acknowledge their good work with recognition or a raise.

Should you start a franchise business?

There are many benefits to running a franchise, as there are benefits to starting a new business. The truth is, which one is right for you will depend on what your goals are and the type of entrepreneur you are. If you start a business from scratch, you’ll have your work cut out for you.

What are the advantages and disadvantages of owning a franchise?

These include:

• Limited Control: As a franchise business owner, you have limited control. ...
• Costs: Opening a franchise is not a cheap endeavor. ...
• Potential Leadership Changes: There is always the possibility that the franchise can be acquired and new leadership will move in.
• Lack of Privacy: Being a franchisee also comes with a lack of financial privacy. ...

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Can any business be franchised?

So, anything can be franchised provided it is: a financially viable business with sufficient margin for both the franchisor and the franchisee. a business that is sustainable and has some unique properties that can be protected.

How much does it cost to turn a business into a franchise?

Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.

What is the cheapest most profitable franchise to own?

What are the cheapest franchises to buy?Cruise Planners. Franchise fee: $10,995. ... Jazzercise. Franchise fee: $1,250. ... Help-U-Sell Real Estate. Franchise fee: $15,000. ... United Country Real Estate. Franchise fee: $8,000 to $20,000. ... Stratus Building Solutions. ... Anago Cleaning Systems. ... JAN-PRO. ... Dream Vacations.

Is it smart to franchise your business?

You should only franchise if it is a part of your long-term growth strategy and goals. Only franchise if your goal is to expand your brand and to build an organization to support and assist your future franchisees.

How do franchise owners get paid?

How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.

Do franchises pay taxes?

Franchise taxes are paid in addition to federal and state income taxes. The amount of franchise tax can differ greatly depending on the tax rules within each state and is not calculated on the organization's profit. Kansas, Missouri, Pennsylvania, and West Virginia all discontinued their corporate franchise taxes.

Can you buy a franchise with no experience?

Most people don't realize that they can have all of this and more through their own franchise. The best part is that there is no experience or education necessary to owning your own franchise. The only thing that is required is a drive for success.

Which franchise makes the most money?

What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.

What franchise can I open for 10K?

There are many franchise opportunities to invest in that don't require a huge initial investment....18 Affordable Franchises Under 10K in the U.S.Krispy Krunchy Chicken. ... Java Dave's Coffee House. ... Capriotti's Sandwich Shop. ... MOMLETA / Baby Boot Camp. ... Fit4Mom. ... Jazzercise. ... Social Owl. ... Fastest Feedback.More items...

What are 3 types of franchises?

There are three main types of franchise opportunities available, these are: Business format franchises. Product franchises, or Single operator franchises. Manufacturing franchises.

How soon can I franchise my business?

As a general rule, it's recommended that businesses have at least one to three years of successful operations before franchising. That number could be higher or lower, however, depending on the industry. For some businesses, franchising during the first two years of operations can be advantageous.

What are the disadvantages of franchising?

There are 5 main disadvantages to buying a franchise:1 - Costs and Fees. ... 2 – Lack of Independence. ... 3 – Guilt by Association. ... 4 – Limited Growth Potential. ... 5 – Restrictive franchise agreements.

How much does a franchise owner make a year?

According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.

How much does it cost to franchise a McDonald's?

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.

Why should I turn my business into a franchise?

Franchising allows bigger businesses to branch out and grow while giving people the opportunity to run their own business with the help and support of a larger company that has a proven formula for success.

What franchise is the most profitable?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

Do franchise owners make money?

Although franchisors cannot forecast income, as a franchisee, you can definitely make money. It’s important to assess your costs regularly and make...

Are franchise fees paid yearly?

Franchise fees are usually on a monthly basis. The fee is a percentage of your revenue, and the royalties can range from 4% to 12% per year.

How much does the average franchise owner earn per year?

In a study from Franchise Direct, the average franchise owner makes $80,000 a year before tax. However, the range of income is quite large: anywher...

What kinds of franchises are available?

In general, there are three types of franchises available: business, management and product distribution. A business franchise gives you the rights...

What is business format franchising?

Business format franchising : The franchisor and franchisee have an ongoing relationship. This style of franchising normally focuses on full-spectrum business management.

What is the difference between franchising and buying a business?

The main difference between franchising and buying an existing business is the level of control you’ll have over your business.

What is the most common form of franchising?

Two common forms of franchising are: Product/trade name franchising : The franchisor owns the right to the name or trademark of a business, and sells the right to use that name and trademark to a franchisee. This style of franchising normally focuses on supply chain management.

What does a franchisor do?

Typically, the franchisor offers services like site selection, training, product supply, marketing plans, and even help getting funding. When you buy a franchise, you get the right to use the name, logo, and products of a larger brand. You’ll also get to benefit from brand recognition, promotions, and marketing.

What are the zoning requirements for a business?

Zoning requirements : Zoning requirements may affect your business. Make sure your business follows all the basic zoning laws in your area. Environmental concerns : If you're buying real property along with the business, it's important to check the environmental regulations in the area.

What is a franchise business?

A franchise is a business model where one business owner (the “franchisor”) sells the rights to their business logo, name, and model to an independent entrepreneur (the “franchisee”). Restaurants, hotels, and service-oriented businesses are commonly franchised. Two common forms of franchising are:

How to decide whether to franchise or buy a business?

Quantify your investment: Review your financial landscape and decide how much you’re willing to spend to purchase — and ultimately manage — the business.

What Does It Mean to Franchise a Business?

Franchising is a type of agreement that entails reproducing a successful business model across multiple locations. As the business owner and franchisor, you would create a franchise agreement to begin the process and move toward opening a new franchise.

How to Franchise a Business

Once you decide to franchise your small business, you'll need to prepare to take on the new independent contractors that will run their individual franchises.

Franchising Your Business: Pros and Cons

Business ownership is rewarding work, and it often requires making tough decisions. Weigh the benefits and drawbacks of franchising your business to help inform your decision of whether franchising is right for you.

Let us Structure Your Franchise Business Model

Have you been thinking about taking your business to the next level? Franchise expansion might be the right model for you. Build a more profitable and efficient franchise marketing model with expertise from the Industry. Franchise Marketing Systems will help you with every element of building and managing a successful franchise organization.

Expand your Business Through Franchising

Let us Structure Your Franchise Business Model Have you been thinking about taking your business to the next level? Franchise expansion might be the right model for you. Build a more profitable and efficient franchise marketing model with expertise from the Industry.

Strategic Planning

Franchise Marketing Systems works with franchise and license models to structure the most efficient business model for duplication into new markets. We will conduct extensive franchise market research, develop your franchise fee structure, territory sizing and complete benchmark analysis for franchise development.

Franchise Research

Know who your competition is, understand how you should take your franchise to market and how you can best compete with other franchise models on the market. We will work with our Franchisors to ensure that they are fully aware of their competition, the industry, and other must-know facts for franchising their business.

Research

Franchise Marketing Systems will conduct primary and secondary research on your competitive market of existing franchise models and license models. Your existing competition may not be your competition in the franchise marketing. It is important to know how to franchise your business and to understand what has worked in your market.

Consulting

Franchise Marketing Systems has experience in working with over 300 different franchise systems and organizations. You will benefit from working with professionals who understand the business elements involved in growing many small businesses as well as the franchise marketplace.

Marketing

Franchise Marketing Systems will design and put together your marketing materials needed to effectively present your franchise or license model to prospective buyers. In today’s age of electronic communications and technology, truly efficient and cost effective marketing can be accomplished with very little printed material.

How to become a real estate franchise?

Following an application, the franchiser examines the market to determine both if there is enough sales activity to warrant a franchise and that there aren't too many existing franchises already in place. It also asks for information on the agent's standing with the state board of real-estate agents as well as the company's business plan and financial statement. (Some require as much as two years' worth of funding to be available based on the franchise's own equation for costs to support a business.) With these in place, it performs a background and credit check and verifies sales records before awarding the franchise.

How much did franchises make in 2001?

Franchise revenues in the U.S. in 2001 were about $625 billion (" Economic Impact of Franchised Businesses ," International Franchise Association / PriceWaterhouseCoopers, 2004). Any business that operates from an efficient, proven system may be a candidate to franchise its name and systems to expand its brand image and revenues. Many people today want to start their own businesses and see the advantages of buying into a proven system. To franchise a company involves 13 distinct steps including creating trademarks, developing documents, creating a marketing strategy, and helping franchisees begin operation.

How to help franchisees with site selection?

Location is critical to most businesses, so you or your agent must help select the appropriate site. Develop criteria and a site-selection approval form to help the franchisee determine what qualifies as a good location. You may be interested in Quick-Read " Choosing the Right Location for Your Business ."

How to market a franchise?

Market your franchises. A plan to promote the availability of your franchise is needed to alert those looking for franchise opportunities. This plan may be as simple as advertising in trade magazines and attending franchise trade shows with marketing literature, such as brochures. The success of existing franchisees will be one of your greatest marketing tools, so be selective in choosing the first few franchises.

What is the importance of corporate logos?

Corporate logos and store decor and layout must be consistent and professional both to attract customers and to reassure potential franchisees that they are investing in a top-quality system.

How many steps are needed to franchise a business?

Creating a successful model on which to franchise your business involves 13 key steps. Each business will have to adjust these steps to the idiosyncrasies of the particular industry and services involved. Some of the steps require a significant time commitment and can be performed simultaneously.

What is uniform franchise offering circular?

A Uniform Franchise Offering Circular, which provides written disclosures to be presented to a potential franchisee.