Franchising is being employed by more businesses and more types of businesses than ever before. Today, almost any product or service can be distributed through franchising. Whether you have a new concept to introduce; an existing business in need of faster growth; or just donít have the capital to expand, the question often is "Can we afford to go slowly and perhaps miss the chance of a lifetime, or should we take the expansion plunge and risk losing the business itself?" Franchising is the modern way to raise capital. The cost of franchising is often a smaller investment than the cost of establishing even one new outlet. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee and royalties, the right strategy for selling your franchise idea can become an immediate high-impact low-risk revenue source. Franchising can provide the capital for rapid growth, especially if you fit into any of these scenarios:
- If your business doesnít have the capital, or the people, or even the time to create a company-owned growth system;
- If your business has the potential to grow faster than most company-owned programs;
- If you want to supplement an existing distribution system;
- If you need to improve systems through tighter controls or more motivated management.