Is 2010 the Perfect Year to Franchise Your Existing Business?
Most small businesses at one time or another have a dream about franchising their existing company. That is to say, selling franchised outlet with their brand name all over the country. For many this is a fleeting dream when they realize they need $1 million in startup capital just to franchise their existing business, at a time they realize that they need to pour more money into their company to grow it locally. It becomes a Catch-22.
Nevertheless, for those companies that end up with multiple outlets in a region, a strong brand name, and customers lining up at the door, that dream becomes more pervasive, it’s hard to turn off. How do I know this? Because I used to have those dreams every day, and then one day I acted upon them and franchised my company. Over little more than a decade, we had franchised the company in 23 states and 450 cities; franchising works.
Now then, if you are in a similar position and you have the funding to go for it, 2010 might be the perfect year for you to franchise your existing business and let me tell you why. You see, the economy appears to be recovering and consumers and customers are coming back to the stores to shop and buy. This means if you franchise your business now your franchisees can cash in on the upturn in the market, and it will make it much easier for them to succeed.
The more successful franchises you have, the more buyers will come to your door to purchase additional units. Therefore, you can see that it makes sense to franchise your business right as the economy is recovering. There are a few challenges of course; one, is with commercial credit for your franchise buyers, and another one is in “God forbid ” we go into a double dip recession, it could make things very tough.
Of course, there is another reality and that is one with extended job losses, layoffs, and higher unemployment figures, there will be more people in the market to buy franchises. And that’s something also you should consider. Think on it.