Franchising a Small Business

Franchising a small business is one way for an ambitious business person to trigger the growth of his or her business. It requires a smaller amount of upfront capital than would expansion under a sole proprietor. Thus, it is easier to achieve.

This is not to say that franchising is an easy process. Taken on its own terms, it is in fact a complicated process involving huge sums of money, much research, detailed planning and paper work, and attention to the details of franchise law. Anybody who is serious about franchising a small business will ultimately have to seek the assistance of a franchise lawyer and a franchise consultant if he or she is to make meaningful headway in franchising.

These two professionals help to streamline the process involved in franchising a small business. They ensure that the business owner meets all the requirements of the process and does not waste any time or resources carrying out unnecessary steps. The franchise lawyer and consultant make particularly valuable additions to a franchising team because, having previously guided others through franchising, they are sure to have reliable “road-maps” of the process in their minds.

 

Franchising a Small Business: The Roles of Franchisors and Franchisees

 

Some business people view their small businesses as family legacies that must be transmitted to the younger generations with all the traditions intact. They are likely to respond negatively to any suggestions that they innovate some aspects of their business practices to make their small businesses more conducive to franchising. They may consider unacceptable the expectation that they cede some control over the “final products” that have come to be associated with their respective trademarks.

This is hardly surprising. When people put as much of themselves into their businesses as small business owners typically do, it is hard to separate their business achievements from their personal lives and, sometimes, from their families. Some people are able to make a smooth transition from being small business owners to being franchisors.  Others are not. This latter group of people makes poor candidates for franchising. It would be better for them to pull back from their efforts to franchise. After all, franchising a business is not for everybody. Other business ideas are likely to work better for them.

Prospective franchisors are not the only ones whose suitability for franchising should be examined closely. Prospective franchisees should be subjected to similar scrutiny. After all, they also play an important role in determining the outcome of the franchising process. Their capacity to meet the requirements of the franchisee role could ultimately decide whether their franchise units succeed or fail.