FRANCHISING 101
Alternatives To Franchising
For many, the attraction to franchise their existing business is two-fold. They see an opportunity to expand their business. They also are attracted by the prospect of teaching others the business that they have mastered and helping aspiring entrepreneurs achieve lifelong goals of business ownership.
Franchising is a powerful way to make both of these things happen. But in some cases, the alternatives to franchising might make more sense. It’s smart to know your options, even if it’s just to be more confident in your decision to franchise.
Here are some of the top franchising alternatives.
Distributorships
Distributorships makes sense for a business owner who has a branded product. If the equity of the brand your building is not in the store or experience but in the product itself, then having as many people out there trying to sell your product makes the a lot of sense.
An agreement with a distributor gives you very little control of how the distributor will operate or very little opportunity to impact how well the distributor will do. The distributor buys the rights to distribute the product, you give them a little training and then, it’s up to them. The more product they sell, the more they will buy from you.
License Agreements
Better known as Business Opportunities, licensing agreements can look very similar to franchises on the surface. Someone buys your business opportunity. You provide initial training and ongoing support. But the difference is that a legitimate business opportunity doesn’t satisfy the three criteria of franchise. This means, as you place and train folks in your business opportunity…
1. They’ve paid very little upfront (less than $500 during the first six months of your relationship with them). This can dramatically impact the quality and commitment levels of those buying into your opportunity. It might impact your commitment level too.
2. They are operating under their own name, not your name. This means, as your networks grows, you’re not building a brand.
3. You have very little control of how they operate once they leave your initial training class.
Corporate Locations
Another option to growing nationally is to open up corporate locations. This can be a great option, appearing to give the business owner complete control over each new location. The drawback? It’s very expensive to open up corporate locations. So, going national via corporate locations oftentimes requires investors. And what comes along with investors? You guessed it, loss of control.
Is Franchising Better Than The Alternatives?
Let’s set up a time to talk. We will glide you through the entire process, from wherever you are right now, all the way to your first of many ribbon cuttings and you can make the choice. Contact us today for a FREE consultation.
Get the basics down
FRANCHISING 101
This is the first stage of the process and an important one. You are learning the basics and making sure your business is even franchisable.
Here’s some of the most frequently asked questions and the answers you need to know. We offer a free consultation and no question is off the table.
What is a Franchise?
At its most basic level, franchising is simply a specific form of distribution for goods and services. But that’s a pretty generic and wholly unhelpful definition. So let's dig a little deeper...
Why should you Franchise?
With other expansion options available, how do you know if franchising is the right way to expand your business?
Alternatives to Franchising
There are other options to expanding your business other than franchising.
Is my business Franchisable?
You have a successful business and you’ve decided you want to franchise it. How do you know if your business would make a good franchise system?
How to Franchise a business
A good franchisor should train, guide and support a franchisee in every aspect of their business. That means a good franchisor’s training and support infrastructure will never stop expanding and evolving. But, when you start, here are the 6 foundational pillars you’ll need to legitimately consider yourself ready to franchise.
“The only strategy that is guaranteed to fail is not taking risks.”
Mark Zuckerberg
