| Franchise expansion today is a self-funding exercise for successful business concepts. It has been seen that the total cost of franchising is at most times much lesser than the cost of establishing one new unit. When a franchisor embarks upon a franchise development program, they initially invest in the franchise system and then the balance costs of expansion along with the risks are put in by the franchisees. Since the franchisees pay franchise fee and then the continuous royalties, the franchise business is injected with the much needed thrust capital ensuring that the right franchise strategy would ensure that you have an immediate low risk revenue generator. Hence it has been seen that franchising provides capital for the growth of your business if your business fulfils any of the following conditions:
- You do not have sufficient resources that include the capital, people, and time either of these to create a company owned growth system.
- If you want to complement an existing sales or distributing system.
- If your business inherently responds better to entrepreneurs than managers and want to improve systems through more efficient control mechanisms.
- Your business can grow faster using franchising than the company owned model.
- Your business has good margins and can work effectively with consumers through franchisees.
Are you ready to Franchise Now?
Find out the most important pre-requisites to franchising.
Take our Franchise Quiz and see for yourself what the scores tell you.
Download our Franchise Mantra and ensure that you have the same embedded into your business.
We would be more than pleased to help you understand the Sparkleminds Proven Consultancy Model of Developing Your Franchise in 17 steps.
You would also want to avoid the Fifteen Most Costly Mistakes that franchisors commit.
Though we say everything franchisable, we believe that franchising is not for every company. It might just be the right solution for you. Speak to a Sparkleminds consultant and they would evaluate your concept, company, and everything that’s needed to understand, while you get set for your franchise journey.
We can definately help you decide whether franchising is the correct choice for you.