Congratulations! You’ve done it. All your blood, sweat and tears have paid off and you have a successful business. If you are ready to expand your business, you have probably considered franchising your business. But how do you know if that is the right move for you?
Like with any major business decision, you need to do your research and talk to some experts to really understand the benefits and drawbacks of franchising your business.
Here are the top 5 benefits of franchising your business:
1. Less Capital Investment Needed
Once your business is successful, it is natural to want to look into expanding it. If you were to open new locations on your own, you would have to fund the whole process. That is what is so tempting about going the franchise route. Your franchisees pay into your program and so you have to put out less of your own capital to get them up and running.
2. Dedicated Business Partners
It makes sense that a business partner is going to feel more invested than just an employee because their own money is on the line. They are going to put their all into running their franchise unit because this is their shot to be a successful business owner themselves.
3. Rapid Expansion
Another benefit of franchising your business instead of opening new locations on your own is that you can grow a lot more rapidly. Because franchisees are bringing in their own money and doing most of the work to get their locations open, you can have a bunch of them opening up all at the same time.
4. A Less Risky Move
Because your franchisees are putting in their own money, you as the franchisor are taking less of a risk. If you set up your franchise program up correctly you can build in protections for yourself so that you still earn money even if some of your franchise units don’t do so well.
5. Strong Profit maker
How much of a fee that your franchisees owe you is typically calculated based on the revenue not the profit of your franchisees so when you build up a nice strong roster of high performing franchisees, you will start to see your profits increase exponentially.
Of course, despite these benefits, franchising your business is not the right move for everyone. Keep in mind that there will still be some up-front costs that will be necessary as you create the infrastructure for your franchise program including the model, the operations and training manuals and any recruitment materials. You will also need to hire staff who will administer the program for you and extra money for advertising and marketing.
You also have less control over your enterprise this way. So if you are a Type A personality and would have trouble letting others put your vision into place, then this might not be the best option for you.
If you are seriously considering franchising your business, then it is a good idea to hire a consulting company to help you. Business owners looking to become a franchisor can also benefit from the services of a franchise consultant. A franchise consultant can help you every step of the way, from everything from writing up the franchise agreements to marketing materials. They can also help you recruit potential franchisees. If you have never been a franchisor before, it helps to have the experts backing you up.
Why Choose MBB Management?
As the top franchise consulting firm in Philadelphia, MBB Management works with local restaurants like Zac’s Burgers, national ones’ like Famous Chaps Pit Beef and international ones like Tony Lukes, helping them reach their full potential, including franchising a business. And they can help you too.
MBB Management specializes in bringing you the best tools and expert advisors to provide a solid path to success. They work primarily with restaurants looking to expand their business through becoming a franchisor. Your one location should already have been proven successful before considering franchising it. MBB Management also works with restaurants who are already franchisors, but who are looking to improve their system. Consultants can aid you in hiring personnel as well as increasing efficiency and quality and boosting up franchise sales.
Some of the services MBB Management offers you include franchise development for new franchise programs, strategic planning for franchise growth as well as help with all the legal documentation involved. They also offer assistance with developing operations and training documentation and franchisee recruitment marketing strategies.
MBB Management also works with other businesses looking to franchise as well, including manufacturers, dealers and distributors. For existing franchisors, services include franchise system best practices and benchmarking and organizational audits, improved franchisee support systems and franchise sales coaching.
Other services include brand development, name and logo selection and design and due diligence assistance for mergers and acquisitions.
MBB Management first made a name for itself in hospitality management, but now also offers franchise consulting and restaurant consulting services as well.
Their restaurant consulting services include franchise development, but also so much more. Even if you are not looking for more locations right now, but are hoping to grow your restaurant in other ways or even if you are just starting out with your first restaurant, MBB Management can help.
MBB’s experienced restaurant consultants can help re-teach your staff basic restaurant techniques and help you streamline processes both in the kitchen and in the dining room. Some of their restaurant consulting services include menu design, staff training and food distribution.
They can also help you find the right balance between quality service and cost so that you don’t lose customers over poor quality dishes just to save money.
Overall, the knowledgeable and experienced staff at MBB Management can provide you with hands-on consulting to help you grow your restaurant by pinpointing the areas that you most need support. If you are considering a franchise consulting company in Philadelphia then consider MBB Management.
Visit MBB’s website or give them a call today to learn about the benefits of franchising. Why wait any longer to take the next step to grow your business?