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  • Writer's pictureRobert Christian

Should I Franchise?

When it comes to running a business, the goal of growing and scaling your company goes hand-in-hand with keeping your customers happy and turning a profit. While there may be some business owners that want to keep things small and therefore limit their company to one branch, most entrepreneurs consistently find ways and means to grow further, expanding the reach of their business with more branches, more employees, and more customers.

That brings us to today’s topic of franchising. Franchising is a business method/ model/ tool that entrepreneurs use to scale and grow their business. It involves a franchisor, who establishes and owns the brand, and franchisee/s, who pay royalties and fees to set up shop and do business using the franchisor’s brand.

In today’s article, we’ll be discussing franchising, by answering the question, “Is franchising the next big step for me and my business?”. Read on to know if franchising is the right move for you, and if your business and your individual goals possess the right characteristics to be franchisable or not.

Do I Have a Franchisable Business?

The first thing we have to settle is whether or not your business is, indeed, franchisable. While franchising is a lucrative business concept, it’s definitely not for everyone, and not every industry or company can reap benefits from this type of business model. You’ve probably seen a locally known business become so successful in your community that the owner decided to franchise, only to fail in their other branches.

There’s definitely certain factors that contribute to this, and we’ll list them down below in the form of questions that you can ask yourself so that you know for certain if your business is franchisable or not.

● Do I have a successful business?

Since franchising involves a large sum of effort, manpower and costs, it stands to reason that the first thing you should ask yourself is this question here. Your business needs to be successful, not just in profits, but also in the way you handle aspects such as inventory, logistics, and customer service. Since you’ll essentially aim to duplicate your results with other franchised branches, you need to make sure that the original branch is successful in its own right.

● Am I in a scalable industry or niche?

There are some industries or niches in business that just don’t work well with the franchisor-franchisee model. Your business needs to survive a duplication in order to be scalable, and this comes with certain sub-questions as well. Is it possible to train your franchisees to deliver your products and services in the same fashion as you did that made you successful in the first place? Is it possible to have systems set in place that can assist your franchisees and to ensure that they maintain that level of quality you are looking for? Are there proper modes of logistics and inventory management to ensure that product and service flow is unhindered in the course of ordinary business? These are all questions you should ask yourself if you are curious about the scalability of your company.

● Am I able to protect my brand properly?

Because franchising involves the licensing of your entire brand to be used by other business owners, you need to be able to have means to protect your brand should things go awry. You can do this via various United States Patent and Trademark laws. For businesses with an online presence, you can also protect your business by owning your website domain.

● Do I have the budget to do this?

Of course, this is a no-brainer, but you need to consider the financials of the franchise plan you are about to undertake. Think about the costs involved in all these previous questions, such as costs for launching your franchise system, costs to create a franchise program/infrastructure that is geared towards maximum growth, costs to protect your brand, and possible ongoing costs to maintain the protection of your brand.

Pros and Cons of Franchising

Now that you know what it takes to franchise your own business, we’ve compiled a list of the most important pros and cons to consider when franchising. As with every major business decision, franchising has both advantages and disadvantages, and so it’s a great idea to look into these and weigh your options to make sure you’re on the right path towards your business expansion.


Business Growth and Scalability

Franchising can be one of the most effective ways to grow your entire business, and its scalability can be limitless given the right circumstances.

Cost-Effective and Revenue-Generating

Not only is franchising a great way to scale, it’s also extremely cost-effective as franchisees generally pay for all the costs associated with setting up your business operations in another location. The royalties and franchise fees generated from franchising is also another revenue stream you can take part of for years and years to come.

Increased Asset Size

With more branches, you’ll be able to grow your overall assets to a large size, enabling you to secure more opportunities such as better standing at financial institutions and the ability to access better deals for business-related equipment and other expenses.

Improved Network

By franchising, you’re opening up your business to more connections and networks. Your franchisees can give you insights as to how and why certain improvements or changes can be made, and ideas can flow more smoothly between various parties that can give your business a further boost in the long run.

Improved Brand Image

Of course, because franchising involves setting up shop in various places around your locale or even around the country and the world, you’ll be able to improve your brand’s image and gain access to free marketing via your other franchised branches.


Financial Investment

While franchising may be extremely cost-effective under the right circumstances, it does entail a hefty initial cost to get the ball rolling. Franchising can involve serious investments in order to set-up the franchise model, which can involve legal matters, marketing materials, and other pertinent requirements.

Time is of the Essence

Since you’ll be dealing with more branches, the increase in the number of management and staff won’t spare you from the fact that you will be spending extra hours to start these franchises and operate them alongside the franchisees.

Not a Cure for Failure

While franchising is lucrative for successful companies in their own right, it definitely isn’t the right way to revive failing businesses, and can lead to even more complications down the line. Stay away from franchising if you believe your business is in a rut and is on the verge of capsizing.

Company Revamp

With franchising on the horizon, a lot of companies tend to revamp their overall structure, procedural system, and training policies in order to make the franchise model easy to duplicate across multiple branches.


Whether or not franchising is for you, no one can deny that the business model has helped shape America into what it is today: a nation of franchises that have helped boost the economy, have provided millions of jobs and millions of dollars in revenue, and have given businesses across the country a globally recognized name. It’s definitely something to consider if you’re the person who’s thinking about the next big, logical step for your company. We hope you’ve learned a thing or two about franchising in this article, and we hope this finds you well.


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