One of the biggest benefits of franchising your business comes down to the old adage “good help is hard to find.” Any business owner who has hired (and possibly fired) employees knows that it really is true! Expanding to new locations is hard enough, but finding passionate, smart, hard-working employees to manage your other locations can seem like an uphill battle.
That’s where the beauty of the franchise model comes in. Instead of hiring a general manager to oversee a new location of your restaurant, retail shop, or other business, franchising allows you to expand your business with entrepreneurs who have a stake in the success of the company, while minimizing your risks.
Rather than overseeing the employees at every new location and putting your good name at the mercy of a manager who may or may not give a fig about whether the business turns a profit, you can sell franchises to independent operators. There are a couple of reasons why this is superior:
- Franchisees want to be involved. With regular employees, they could just be taking the job because, well, it’s a job! Franchisees, on the other hand, are buying into your vision. They want to be part of your company and are willing to shell out for franchise fees and royalties to participate.
- Franchisees have more to lose. You can bet that a franchisee will work harder than a mere employee, because that franchise location is his or her business. Your franchisees are obligated to pay you a royalty fee as well as a percentage of gross sales. Obviously they can’t get theirs until they give you your cut, so they will be motivated to meet- and exceed- the necessary sales in order to ensure their own take home pay is adequate.
So, who would you rather have face-to-face with your customers? A bored employee with no investment in your company’s vision, or an entrepreneurial small-business owner whose own success is hinged on yours?
Do you have a successful business you would like to expand with minimal risk? If so, you are ready to franchise your business and will need to hire a franchise consultant who can help you navigate the process successfully. At Franchise ASAP, we offer experienced franchise development that enables you to franchise your business and start selling franchises in just 6 weeks. Contact me today to learn more about expanding your small business through franchise sales.
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