How to Grow Your Franchise Business: 11 Methods That Really Work
- 1. Fine-Tune Your Business Model Currently, there are over 750,000 franchises in the US. ...
- 2. Effectively Showcase Your Business Model Besides refining your business model, you also need to effectively showcase it to potential franchisees. ...
- 3. Create Resources ...
- 4. School Franchisees ...
- 5. Start Local ...
- 6. Never Lose Sight of Good Customer Service ...
- 7. Offer Value to Franchisees ...
- 8. Implement the Right SEO Strategies ...
Full Answer
How can small businesses expand through franchising?
Once you're ready to commit the time and capital necessary to become a franchisor, you need to design your franchise operations system, prepare, submit, and register all legal documents, hire staff to manage your franchise selling and marketing, and build a support network for your franchisees, including the ...
Is franchising a good way to grow?
For many businesses, franchising is an excellent route to growth, opening up new opportunities and markets. Laurette Pienaar, National Franchise Manager at Nedbank, unpacks why it's worth considering this route.
How do I succeed in franchise business?
Below, we've listed 10 keys for franchise success.Make sure you have enough money.Follow the system.Don't neglect your family and friends.Be an enthusiastic franchisee.Recruit the best and treat them with respect.Teach your employees.Give customers great service.Get involved with the community.More items...
How do you grow a franchise system?
To grow your franchise system and sell franchises, you should:Making sure that now is the right time to franchise.Budget strategically for marketing and recruiting.Identify your brand differentiators.Season your brand organically and early-on.Over-support your first few franchisees.Build up solid unit economics.More items...
Do franchise owners get rich?
According to a survey done by Franchise Business Review*, the average pre-tax annual income of franchise owners in the U.S. is about $80,000. However, only 7% of franchise owners earn over $250,000 per year with 51% earning less than $50,000.
What are 3 advantages of franchising?
There are several advantages of franchising for the franchisee, including:Business assistance. One of the benefits of franchising for the franchisee is the business assistance they receive from the franchisor. ... Brand recognition. ... Lower failure rate. ... Buying power. ... Profits. ... Lower risk. ... Built-in customer base. ... Be your own boss.
What are 5 keys to success in owning a franchise?
But even with the support of a strong, reputable franchisor, a successful franchise owner should have the following characteristics:Motivation to Succeed. Successful franchise owners are devoted to their brand. ... Follow the System. ... Open to Support. ... Avoid Burnout. ... Become a Valuable Community Member.
What are the five qualities of a good franchise?
5 characteristics of a good franchiseeAbility to follow instructions. The foundation of the franchise model is that all franchisees follow the same system, offering the same products and services in their respective territories. ... Adaptable to change. ... Driven. ... Similar qualities to franchisor. ... Forward-thinking.
How long before franchise is profitable?
One common misconception when it comes to operating a franchise is that once you sign on the dotted line and open for business, the customers and revenue will start flowing. This is typically not the case. It normally takes a year or two to become profitable.
What are the 4 types of franchise arrangement?
Below are four types of agreements franchised businesses commonly form.Single-Unit Franchise Agreement. In a single-unit agreement, the arrangement grants the franchisee the right to open and operate a single franchise unit. ... Multi-Unit Franchise Agreement. ... Area Development Franchise Agreement. ... Master Franchise Agreement.
How can a franchise increase sales?
Here are five franchise sales and marketing efforts that increase qualified leads.Define your target prospects. It's hard to sell if you don't know who you should sell to. ... Have a franchise recruitment website. ... Work with your marketing team. ... Consider a franchise development company. ... Use technology.
What is the franchise strategy?
Put simply, a franchise strategy is a road map that gives your business direction by: outlining objectives. helping you to understand the landscape in which you operate. mapping tactics to achieve your goals. planning for any potential obstacles in the road.
Is franchising a good investment?
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
Is franchising a good way to build wealth?
Franchising is a great way to own your own business by partnering with an existing company. However, hitching your wagon to a budding successful company can be a potentially smart way to create future wealth.
Why is franchising fast growing?
Franchises can be costly to start, and operating freedom is restricted because the franchisee must conform to the franchisor's standard procedures. The growth in franchising is attributed to its ability to expand business operations quickly into new geographic areas with limited capital investment.
Why is franchising a good way to expand business?
The franchisors' principal benefit is that they can expand more entities rapidly across different locations. Since franchisees buy the franchises to own and operate them, the parent company grows without taking on the financial risks they would endure if they opened the new locations themselves.
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.
Find out if you and your business are ready
Will your business flourish as a franchise? It’s not enough to have a record number of sales. Your concept has a lot to do with how a franchise will succeed so make sure to consider this well. If it’s appealing to both the customers and prospective franchisees and can succeed without your personal supervision, you’re well on your way.
Get acquainted with the legal requirements
Before selling your franchise in the US, you need to register a Franchise Disclosure Document (FDD) with the Federal Trade Commission. You’ll need to provide vital financial information in this document, as well as a manual for franchisees.
Decide on your franchise model
When you’re preparing the necessary paperwork, you will have to decide how you’ll conduct operations as a franchiser. Your main decisions should cover the following:
Register as a franchiser
Your next step is to complete and submit the legal paperwork. It’s normal to be asked for more disclosures before approval is given so make sure that you provide all the documents being asked for. It can take several months to get approval; patience is a must!
Sell franchises and support your franchisees
Finding franchisees and selling your franchise is now your main task. It can be difficult due to the risk involved for potential franchisees, but everything is easier when you have a solid marketing and sales strategy.
How to grow a small business?
When you’re looking into how to grow your small business, you need to do market research. This not only lets you better understand your existing customers, but also your potential customers. It’s important to gain insight into your target market and know what their needs are. That way, you can see how your business can grow and change to meet those needs.
Why do you form a strategic partnership with a vendor?
You may even form a strategic partnership with a vendor to help expand your business. Whatever type of partnership you form, it’s important you manage business relationships and maintain effective vendor relationships.
What to do if you don't treat your customers?
Prioritizing customer service: If you don’t treat your customers right, they won’t want to support your business . Making sure you address their concerns and give them the best experience possible shows you value them as a customer.
What is strategic partnership?
Entering a strategic partnership with another business can give you the chance to reach a broader network of customers or align growth with strategic goals in your business plan. One example of a successful strategic partnership is between Starbucks and other national stores, like Barnes & Noble or Target. The partnership puts the coffee chain into many retail stores across the country, which increases its reach and revenue.
How to give back to the community?
Giving back to the community: Encourage your employees to volunteer in the communities they live and work in. Whether it’s working at a food bank or cleaning up open spaces, these kinds of activities show that your business is serious about investing in the area and people.
Is there a one size fits all strategy for growing a business?
That’s why so many people are interested in how to grow a small business. There isn’t an easy one-size-fits-all business growth strategy for small business owners . But, there are key strategies you can use to give your business the best chance at growing.
