Growing Your Company: Is Franchising the Next Step?
When you own a successful business, you have a number of options regarding how to keep your company growing. You could create an outlet for internet sales, expand your current physical location or open a second one. If you already have several locations or you believe that the day-to-day operations of multiple sites is not something you are interested in doing, you may want to consider franchising your business. Franchising may be an especially attractive idea if you have established your company’s name a local or regional leader in your industry.
In my practice as a business planning attorney, I have worked with many business owners who were considering franchising. For some, it was the right decision at the right time, leading to very profitable results. For others, an alternative to franchising was more appropriate. Before you decide to allow franchisees to use your company’s name and business practices, there are some things you need to consider.
Your Business Model
Franchising your business means that you will need to be sure that your company is structured in such a way that it can be duplicated and run in other locations. Doing so requires fairly strict company policies and a set of procedures that must be followed by your franchisees. As you built your business, you probably had to experiment with different approaches to see what worked and what did not. This is not an option once you reach the franchise level. You will need to be certain about your business practices and how they are to be implemented.
Setting Standards for Franchisees
Among the most important decisions you will have to make when franchising is determining who you will trust with your professional reputation. Some would-be franchisors may just be looking for their next financial opportunity. Others, however, are looking to go into business for themselves while taking on a name that is built on customer trust. You and your management team will need to develop a system for screening franchisors that helps you find individuals whose objectives and goals align with yours and those of your company.
Accepting Your New Role
Perhaps the most difficult part about franchising your company will be settling into a new role as an off-site manager. While you will be able to maintain a great deal of control over the business as a whole, you will not be able to run each location. Choosing the right franchisors allows you to entrust the day-to-day operations to them so that you can focus on the bigger picture. If the idea of backing away from frontline work is unsettling to you, perhaps franchising is not the best choice for your company.
Speak With a Hoffman Estates Franchise Lawyer
Franchising your business also requires a great deal of legal preparation, including franchise agreements, franchise disclosure documents, and registration with state regulators. An experienced Naperville business law attorney from our firm can help you take care of the details while you focus on getting your business ready and the right people in place. Contact The Gierach Law Firm today to learn more about franchising options for your business and find out how we can assist you in reaching your goals. Call 630-756-1160 to schedule a confidential consultation.