6 Reasons Why You Should Franchise Your Raleigh Business
Many successful entrepreneurs have dreams of continued growth (additional personal income) and expansion. How can a successful business owner give additional time, finance, troubleshoot, keep his primary business profitable while adding two or ten or one hundred new locations?
Your Business Story
Every business has a story. A friend of mine was working full time and in the evenings and weekends, he repaired Apple Computers. He was doing this as his side-hustle until one day he decided to take a huge risk and open his business in a retail shopping center near my house. He called his business the Mac Toy Store.
Every day when I drove by his store I noticed a lot of cars in front of his store. Tina and I had three teens at the time so we were frequent customers like everyone else with broke iPhones and broke laptops.
Jim Muir, the owner, thought about expanding but how could he? He was slammed with business and he was already working more hours than humanly possible. Another friend that Jim and I went to church with owns a franchise business called United Franchise Group sat down with Jim and laid out a plan for expansion.
This plan allowed Jim Muir to keep the South Florida territories for personal expansion. This region was the original territory that Jim felt like he could reasonably expand in. The rest of Florida, the U.S. and the world would become territories that UFG would franchise and expand into allowing Jim to make royalties as his business grew.
The Mac Toy Store has a new name today. It is now called Experimac and it is one of the fastest growing franchises in the world. In just a few short years, Experimac has become a household name as it has Inc. Magazine named Experimac 57th on it’s 500 fastest growing businesses in the US with $12.4 million in revenue in 2017. In four short years, Experimac has grown to over 120 locations nationally and over 25 locations that have been bought internationally.
Experimac is just one story. Your business also has a unique story.
Why Should You Consider Franchising Your Raleigh Business?
1. Costs – How much money will it cost you to open a second location? What if you, for a fraction of that cost could franchise your business allowing hundreds of stores to open for that same original cost? Franchise development handles 100% of setting your business to be franchised.
2. Risks – If you open a second location you assume 100% of the risks at the maximum exposure that might jeopardize your original profitable business. Franchising development allows others to purchase your systems, branding, and model while you get paid on the front end of their purchase and as they pay royalties monthly.
3. Time & Training – Imagine that you expand your Raleigh business on your own. Every manager has to be hired, trained and they require ongoing training. This is also true of every employee. Who hires and trains all these people and rehires others when some of these are terminated or quit? Can you as a business owner take time away from your primary business in order to train all these people? In the franchise model training responsibility isn’t yours. This responsibility belongs to the corporate franchisor.
4. Servicing – When a business owner opens new locations they quickly realize that issues double or triple because the owner can’t be everywhere at once. In the franchise model the franchise owner is present and when they have an issue they call the franchisor, NOT YOU. Of course, there are always problems and issues but the franchise model allows you the opportunity to keep running your original business and expand personally in your region if you so desire.
5. Resources – Office space for training, travel arrangements for franchise buyers, marketing and selling your franchise, trademarks, Franchise registration, operations manuals and much, much more are 100% handled by your Franchisor. This again will allow you the freedom to keep your eyes focused on your business.
6. FDD – Every franchise is federally mandated to have a Franchise Disclosure Document. These are lengthy, legal documents that your franchisor and their legal team will handle for you. The Federal Trade Commission requires that franchisors present to prospective franchisees the Disclosure Document, FDD, which contains detailed information about the franchise company and its principal executives.
The Disclosure Document provides the potential franchisee applicant with detailed background information on the franchise company, such as: specific details about the officers - who they are and their business history; the organizational structure of the franchise company; the business concept; funds required by the franchisee; training provided; termination provisions; etc.
Franchise Your Raleigh Business
Franchising your Raleigh Business is a decision that will provide you with options that you might not now be considering. Often, business owners feel stuck for obvious reasons. They want to grow, they want to earn more but their own capacity is often maxed out already. Time is a commodity that they have very little and the financial risks are often too great to bear alone.
The franchise development conversation is worth investigating. I’m sure that Jim Muir is glad he sat down for a conversation about franchising his business. Could your Raleigh business be the next Experimac story?
Call us today for a free consultation. We want to be your trusted business brokers.