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Should I Franchise My Business?

Franchising is a business and distribution model that permits a successful business owner and entrepreneur to achieve unit expansion (regionally or nationally) through the the utilization of franchisee capital and managerial effort. That is, franchisees establish their own operations and franchise units and, in doing so, assist with the expansion of your business. Franchising is not right for everyone and when determining whether or not you should franchise your business, some of the factors that you should consider and evaluate, include:

  • Whether or not you business is consistently profitable;
  • Whether or not you have established "systems" for the operation of your business;
  • Whether or not you have trademarks / trade name that are recognized by consumers and may be legally protected;
  • Whether or not you have the capital to establish an infrastructure for the training of franchisees and the preparation of necessary Franchise Disclosure Document

There are many other factors to consider, however, as a "prospective franchisor" the primary issue becomes whether or not your business, and systems may be taught to franchisees and whether or not your business may be "profitably" replicated by franchisees.

If you are interested in franchising your business, learn more about The 7 Steps to Franchising your Business.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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