Opening your own business is a tireless and all-consuming process that requires attention to every little detail to get everything just right. Once your business is up and running, you are then grinding day and night to focus on growth and expansion. Entrepreneurs are faced with difficult decisions on everything from daily operations to staff management to inventory concerns. This is why many people refer to their businesses as their babies. It can take years of nurturing to grow one into a successful, flourishing entity.
Once your single-location business is a success, you may start to wonder: “what if I opened more?” The franchise model makes this thought a true possibility. When you build your own franchise, you reap many benefits as a business owner. A franchise allows you to expand your existing business model into a full-fledged empire.
Here are some perks of becoming a franchisor:
- Multiple Income Streams
- Minimal Employee Management
- Quicker Growth
- More Brand Exposure
1. Multiple Income Streams
Not only do franchisors have the income stream from their first, successful location, but now they will have access to multiple income streams from their franchise locations. Initial franchise fees are just the start of the income. Royalties and service fees can also supplement your cash flow on a weekly or monthly basis.
2. Minimal Employee Management
Hiring and managing employees can be a hassle for a business owner. When you franchise your own business, you take the hassle out of employee hiring, training, and management. Instead, you can provide the framework for a model employee and allow your franchisees to search for the perfect candidates in their area. This frees up your time to focus on business expansion or the bigger picture.
3. Quicker Growth
When you opened the doors to your first location, you put your blood, sweat, and tears into the process. However, opening your second or third (or fourth…) location can be much simpler when you share those responsibilities with a franchisee. Once you start opening dozens of stores, you will likely have a support team in place to streamline these practices and get your franchisees set up for success from the start.
4. More Brand Exposure
By opening new locations, you increase the exposure of your brand. More people will see your stores and fall in love with your products or services, which will only increase the number of customers walking through your doors. As you increase your exposure, you also increase your audience and customer base. This only means one thing: more profitability for both you and your franchisees.