In an article originally published by Entrepreneur, iFranchise Group Senior Consultant Emiliano Jöcker shares essential advice when contemplating franchising a business.
He establishes that franchising is a viable business expansion model with a long track record, likely dating back almost 175 years in the U.S. Franchising, he notes, also encompasses countless industries and business models, from restaurants to automobile services, to beauty salons and retail stores, to various B2C and B2B services — and even healthcare.
However, he emphasizes that the decision to franchise a business is a significant commitment that business owners need to investigate thoroughly. Potential franchisors need to determine whether they have the necessary capital; the resources to develop the proper legal, operations, and marketing tools; the ability to lead a growing organization; the drive to foster long-term relationships with franchisees; and more. He also stresses the importance of understanding that a business that expands through franchising must shift its focus from routine daily operations, to now selling franchises and supporting franchisees.
He also addresses the key criteria needed for a business to be considered “franchisable” and the importance of goal setting. He emphasizes that franchising is a specialized field, with unique structures, laws and practices. And, he acknowledges that there are alternatives to franchising that can also be considered.
In the end, Jöcker notes, franchising a business is an important decision that requires ample due diligence, starting with some self-examination, some business analysis, and the guidance of seasoned, professional franchising advisors.
