Whether you’ve been in business for years or you’re just opening your first location, expanding your business can be an overwhelming task. It’s definitely not something to be taken lightly. We have found that in business you tend to either be growing or dying, we think that most businesses prefer the former and not the latter.
Instead of focusing growth through company owned locations or territories, many business owners find that by embracing the franchise business model, they can grow and expand much faster and without bearing all the financial and management burden. In fact, the International Franchise Association estimates that the total GDP for the Franchise Sector will increase by 2.7% in 2018. Not only have more businesses turned towards franchising, but those figures are only expected to increase in upcoming years.
Here we discuss the reasons why you might want to consider going the franchise route with your business.
Increase Brand Awareness Faster
When you have one or a few locations, it can be a challenge to make more people aware of your brand. Even if you’re a master at social media, you’re still limited to reaching people who are situated close to those few locations. And if people aren’t aware of your brand, that means you’re missing out on sales opportunities.
However, when you have multiple locations with franchisees running the operation, it’s a much easier task. First, the simple fact of having additional locations allows for more people to know about you and visit your stores. Plus, those franchisees will be responsible for promoting their locations, so you won’t need to spend your time trying to spread brand awareness for every single unit out there.
Of course, you’ll be offering support and providing them with guidelines, but franchisees will do most of the day-to-day promotion interpedently by following your franchise marketing system.
Expand with Less Capital Investment
Every business owner knows the hard work that goes into starting a business. And when it comes to expanding and opening a new location, not only is it costly but it also means more hard work and a lot of valuable time.
With the franchise model, those concerns are substantially minimized. When individuals buy a franchise, they pay an initial franchise fee to join the franchise system. Those funds will go towards helping your franchisees open their location and learn your system.
Business owners also face the issue of trying to find the ideal location when they open up a company owned location. Leases need to be signed, various vendor agreements need to put in place, and there will be a staff to manage too. Unlike the typical business owner who would have to handle everything on their own, as a franchisor your franchisee will take on many of those tasks and duties and you will support them with their efforts. Being able to pass on those responsibilities allows you to focus on growing the brand, the system, and providing support.
Earn Revenue Faster with a Team of Franchisees
When you’re the owner of multiple locations, you’re responsible for the profitability of each and every one. Even though the site manager has responsibilities that should be geared towards performance, there’s no direct incentive for them to ensure their location is profitable. If that location fails to meet sales quotas, it’s on the business owner to take on the loss.
Franchisees are responsible for their own franchise profitability. Unlike a hired employee, they’ve already invested their own money into the business. Not only are they motivated to make the business do well, but they also know that the better the location does, the more money they’ll earn as a result.
Need Help Deciding If You Should Embrace the Franchise Business Model?
Making any business decision requires careful planning and thought. It’s often a good idea to seek out help and guidance from experienced franchise professionals to help you make the best decision for your business.
That’s where Big Sky Franchise Team can help. Our expert team of franchise professionals can help you determine whether choosing the franchise business model is a viable option.
Contact us today or call us at 855-824-4759 and find out if the franchise business is right for you.