Many business owners consider franchising their businesses, but most don’t understand how effective franchising your small business can be for its growth. If you want to learn more about how franchising can help your business grow, continue reading this article to find out how franchising can help you achieve the business growth you want.
When you franchise your business, you don’t have to pay the cost for the new franchise location and renovations, as all of these costs will be covered by the new franchisee paying the initial franchise fee. In return, after paying these costs, the franchisee will be trained and supported and become an official part of the franchise network.
Franchisees tend to be much more motivated than employees to achieve success with the business since if the franchise fails, you don’t just lose a job, you lose a business, so it is not as easy as just finding a new career or business venture especially if most of your capital was tied into that franchise business. This is the main reason why franchisees are much more motivated as they are working for themselves and their success, unlike having a job where you work for someone else.
When you franchise your small business, you have minimal risks as you do not have to invest anywhere near as much capital as you would expanding your business alone as franchisees will cover the fees for advertising, training & the franchise businesses location, meaning as a franchisor you can see high returns for minimal risks.
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You can expand your business faster
When you decide to franchise your business, the growth will be significantly faster than going it alone, as you will have dedicated franchisees running the day-to-day operations of each location for fewer expenses allowing you to scale your business as soon as possible.
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You are helping the economy
Franchising does not just help a business owner achieve higher profits. It also contributes massively to the economy by providing job opportunities and capital. In fact, did you know that franchising contributes over £17 billion to the UK economy each year?
Is franchising your business the right choice for you?
If you have read the article and decided that franchising might be the best option for you to scale your small business, we recommend that you read our previous article about how to know if your business is franchisable. This should help you determine if your business would be a good fit as a franchise model, as this is one of the first things you need to consider before becoming a franchisor.
Final thoughts about franchising your business
We hope this article has helped you understand how franchising can help a small business grow if you are interested in reading more articles like this, you should check out our dedicated franchising blog at Franchise UK providing over 1,000+ articles of different franchising information ranging from franchising success stories, market research all the way to advice to achieve success when franchising a business this should help you avoid potential pitfalls get you started on your journey in franchising.