When you’re running your own business and are starting to expand, you should seriously consider franchising your business. Franchising your business is simple and easy with places like franchise info to help you with the process.
Expanding your business by opening more store locations is an expensive way to expand when you factor in marketing costs, building leases and employee salaries etc. Wheras franchising your business will actually make you money, not only will the franchisee have to pay for all costs of their branch, they will also have to pay you a sizeable sum of money to be part of your franchise.
If your business plan is sound this should mean you can expand quicker, make more money and you don’t have to spend a penny.
If you expand your business by yourself, that just gives you more work to do managing the day to day operations yourself, but with a franchise the owner will do all of this in accordance with the terms and conditions of your deal. This means you don’t have to micro manage and can spend more time working on the branches you own.
Franchise networks allow for much faster expansion because each new franchise will be fully financed by the franchisees, when compared to natural business expansions, which are naturally slower as you will be working with a limited amount of capital and must therefore wait to make a return on each new branch before opening another.
Better Market Penetration
Franchisees will usually have contacts and experience in the areas they set up their branch, this means that they can reach audiences you can not by yourself and improve your penetration of the market. providing better and faster market penetration than could be achieved by your business expanding into new and unfamiliar territories on its own.
Because the franchisees will be running their locations you are guaranteed great management from them, they have already financially committed themselves to you and with that level of involvement they can provide a greater service than any hired manager
It’s simple, with someone else running store they will be responsible for staffing it, saving you time and money that would be spent looking for new employees. Even in the event they wish to sell their branch, it will be up to them to find a suitably qualified buyer who, in turn, will be responsible for all recruitment functions at the franchise.
Master franchising a UK business across international borders will enable your company to expand globally in a very efficient manner. Each master franchisee is responsible for the management of individual franchises in their country, which means they can use their local knowledge and expertise to ensure that the initial business model is a success in their part of the world. There is no need for you to create subsidiary companies overseas or to deal with all the complications that arise from such an undertaking.