It is time to grow your successful business and scale new heights, and you are faced with the option of going it alone or going to a venture capitalist and offering them a certain amount of control in exchange for capital. Franchising the business opens up a larger market to the new businesses with lower investment and total control of the business. There are few fundamental questions you must ask yourself, before diving headlong into Franchising. Can your business be franchised? For a business to be franchised it must have a standing in the market. Good press, Goodwill, and good management are the basics. It is essential to know if your business can spread to other markets in its current form. Your business processes must be streamlined so that they can be taught in a few months. Reading prevalent market trends is a must. Franchisees generally end paying 4-8% in royalties and if they do not recover their investments, they will be displeased, leading to further issues. Have you done your Due Diligence? Due diligence refers to all and any appraisals undertaken before selling or buying a business. Make sure that your financials match up to your proposal as investors will check up on your financials too.

The idea of owning a franchised business is appealing to many first-time business owners. The lure of buying into an existing, successful business model is hard to resist with many urban myths on the ease of owning and running a franchise. With many franchises failing within the first year of business is proof that the idea of a franchise that runs itself is nothing but a myth. This myth is the first and biggest pitfall of the Franchise business. So, first time investors, ask yourself the ultimate question before you commit to a franchised business, ‘Is Franchising for You?’ The first question before committing to a franchise is to know what franchise to pick. Most investors run through the plethora of available franchises and prefer to take one up, that is more attuned to their personal sensibilities. This may not be the best for the brand or the franchisee. A franchise, like another business, is dependent on the local market. If the product is sellable and has a demand in the area, the chances of it bringing in profits are higher. Buying into a franchise that is attuned to your personality will only offer you a happy work place. The second question before settling down on a franchised business is, ‘How much time can you give the business?’.

Your business has grown well and now it is time to expand. The fastest way to grow your business is to Franchise. But not all businesses can or should be franchised. Let’s skim the waters and see what will it take to get your business franchised. Knowing your business: Before franchising your successful business, you must know your business well enough to set procedures. From front desk operations and keeping books to ordering supplies, franchisors have the obligation to teach franchisees how to run their franchise. You must be able to express running the smallest detail of your business in procedural steps. As you set the standards for your franchise, franchisees will have little to no room to improvise. Knowing how to grow your business : You may have a business, that is unique to your market, but is the proposition unique to the markets you are exploring. On one end of the spectrum, franchises can be grown as locally, as in a city or as an international brand. Knowing the market, you intend to grow in, is paramount. Growth of your business should be natural or else it will get surprisingly difficult to support your franchise. Knowing the legalities of running a franchise :

You have been looking to start your own business, you have raised some initial capital, but how do you know what business to start! Obviously, it has to be something you are good at, but how do you know it is going to work and it will bring in the rewards you seek. Franchisors know their market and have created formulas proven to work in various markets. So, this might be the best time to own a franchise. Here is our pick of top franchises to buy right now! Checkers Drive-In: Checkers has been around for over 30 years, but has begun franchising only recently in 2010. The fast food franchise is a hot property today and is rated highly for growth prospects, training, and support. With an initial capital investment of $250K and total investments of up to $520K, Checkers is one of the popular picks. The Cleaning Authority: Our second pick, The Cleaning Authority, has been around from 1996. An initial investment of just $44K will get you started and this home maintenance company will help you finance the remaining investment. The home cleaning industry is currently seeing a rising trend, with more people calling in for domestic cleaning services.