26 Jul Franchising Myths Debunked: Why Even a Small Business Can Successfully Franchise
It’s a very common myth that only large companies and establishments can franchise their business. Most business owners believe that they need considerable amount of resources and finances to start a franchise, but that’s not true at all. What you need is an established business. At The Franchise Institute, we always encourage small businesses to consider franchising; and here are some reasons why you can be successful at it.
Reasons why even small businesses can be successful
#1 If You Have a Brand, You Have Potential
Do you have clients or customers than take a long drive from their home or office because they want your products and services? Has anyone ever told you that they wished your store was closer to their place of residence or in their town?
If so, your business has a potential for franchise. Many customers will go that extra mile to get products or services they like; but why make them? If you have an established brand, all you need to do is make sure your business has potential; have the right franchisee and you’ll see success.
#2 Your Investment Is Minimal But the Possibility of Growth Is Immense
All you need to do is register your business as a franchise and file the required paperwork. After that, it’s all the question of proper training and communication with the franchisee. You need to ensure they understand your brand, your standards of quality, and your standards of customer service.
Franchises succeed because there’s a brand name and consistency backing them. If they don’t offer this to the customers, they won’t earn revenue or benefit your company. Aside from the paperwork and training, the investment comes from the franchisee; that would pay you to use your brand and products in their establishment.
#3 You Kill Two Birds With One Stone
Your company name and products help franchises gain revenue and customers; and in turn, the franchises promote your brand and make it more visible. For example, companies like McDonald’s or KFC wouldn’t be such global forces if they didn’t start franchising. That helped these brands grow from a relatively small business to a large, global company. Franchising can open that door for you as well, and help you promote your brand at a much larger scale.
#4 It is The Shortcut to Growth
If you want to grow and set up multiple establishments, you need money. You can take the long route and save enough money to expand but that would require time and effort. You could also try to get investors to invest in your business, but that takes time and can come with many strings attached.
However, if you franchise your business, you have all the resources you need to grow and you can get access to them relatively quickly. We don’t say that franchising doesn’t have its risks and pitfalls; but if you plan well, you’ll see quick growth and expansion.
#5 The Franchisees Benefit As Well
Franchisees also benefit because smaller businesses usually require a smaller investment and there’s less competition. For example, if you own a classic Italian pizza restaurant that makes stone oven baked pizzas, the brand would have a relatively large following because people like genuine flavours. However, such a company would have as many franchises to compete against as Dominos or Pizza Hut would have. This benefits the franchisees immensely.
If you want to know more about franchising or want some advice, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435