When to Franchise Your Business?

When is the Right Time To Franchise Your Business?

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How does a company like McDonald’s go from 1 location in 1955 to over 32,000 locations and $25 billion in sales in 2011?  How did a Junk Removal company with an 800 number build from 1 location in 1999 to over 220 locations and operations in four countries worldwide in 2011?  What about a Sales Training Program under David Sandler that in 1983 operated with one location in Maryland and today has over 250 locations worldwide?

Franchise success stories are all around us.


JanikingJani King Cleaning:
  First Location Opened in 1969, Today the cleaning company has 12,282 locations Globally.  The organization’s tagline is “The King of Clean” and offers franchises around the world.

Kentucky Fried Chicken:  First Location Opened in 1952, Today the Chicken Restaurant Chain has 13,266 locations Globally.  Colonel Sanders originally started the KFC concept in a gas station outside of Louisville, KY.Kfc


ServPro Restoration:
  First Location Opened in 1969, Today the Restoration Company has 1,526 locations in the United States.  ServPro provides water and fire damage restoration services.

Subway Sandwiches:  First Location opened in 1965, Today the Sub Sandwich Chain has 34,679 locations around the world.  The Subway concept was started by Fred DeLuca who was originally looking for a way to earn some money for college.


Valpak Direct Marketing:
  First Location opened in 1968, Today the Direct Marketing System has over 200 locations around the world.  The Valpak Franchise is considered the leader in direct mail marketing and advertising.

 Each of these success stories happened through franchise expansion.  Each of these businesses hit that point in their growth where they met a crossroads in their organization’s expansion model.  Many business owners today are faced with this decision in their own business, grow, wait or shrink.

Franchising provides businesses with many benefits, one of which is rapid market expansion and increased speed of growth.  It also lends an organization the ability to raise capital without burdensome debt and to draw from local owner operator strengths when opening locations in far reaching places.

The question is always whether a company is Franchise-able?  Does your business have what it takes to be a successful franchise organization and are you at a point where franchising could be implemented successfully into your organization’s business plans?

Questions to Ask:

  • Is your company profitable and do you have opportunities to replicate this profitability in new locations?
  • Do you have something that creates a “Draw” that could attract franchisee interest?
  • What qualities do you have that would help train, support and guide new franchisees to success?
  • Where could your product or service perform well outside of your company-owned location?
  • What potential barriers that could prevent your successful implementation of a rapid expansion model?
  • Is your business a concept something that can be franchised Nationwide or Internationally?
  • Could there be any legal issues making your expansion into new states more difficult?
  • What competitive advantages do you have over the rest of your competition?

Franchising is one of the most effective business models in the world. The model allows you to launch your brand, services and products into the marketplace while helping people meet their dreams by being in business for themselves.

For information on how to franchise your business, contact us for a free consultation:

(800) 610-0292