The Basics of Growing a Franchise
Whether you are a starting a franchise as an entrepreneur or already an existing emerging franchisor, you will need to have a firm grasp of the risks, challenges, and rewards that await you in this endeavor. Winmark has 30 years of experience in franchising, 5 successful franchise brands and over $1 billion in system-wide sales. This experience gives us the in-depth knowledge to provide professional franchise advisory services and answers to frequently asked questions about franchising. If you’re exploring the possibility of franchising or are still feeling the growing pains as an emerging franchisor, the information here can give you a better understanding of some of the benefits and assistance that Winmark Franchise Partners can provide.
Learn more information by clicking through to the following questions or read some of our commonly asked questions, listed below:
What Is Franchising, Exactly?
You can participate in the world of franchising as either a franchisor or franchisee. A franchisor is the owner of the brand—they have created a trusted and popular name and have decided to expand their business by allowing other business owners to use their brand name, their operating system and receive their support. A franchisee pays an initial fee to join the franchise as well as an on-going continuing fee, known as a royalty, and in return receives the benefit of using their well-established name, training on their proven operational methods, and access to franchisor resources. A franchisee business owner runs his or her location as he or she sees fit, provided it coincides with the branding and primary operational standards and requirements of the franchisor.
Franchisors benefit from this relationship by growing their brand while utilizing other people’s capital. The franchisee benefits by having a proven business model, a strong brand name to leverage and the systems and support of a successful franchisor. If you’d like to learn more about the benefits of franchising, visit our page on why you should franchise your brand.
How Do I Start a Franchise?
Most business owners who decide to franchise already operate a successful business with a proven model. Entrepreneurs typically choose franchising as a model to grow their business due to the low capital required, the strength of locally owned and operated businesses and the ability to scale quickly.
However, running a franchise is an entirely different business than running a successful corporate operation. Even a highly experienced and successful business owner can have a difficult time if they are not fully prepared for the challenges involved which is why many enlist the aid of franchise advisors like Winmark Franchise Partners.
Is My Business a Good Candidate for Franchising?
Deciding to franchise is a big decision, one for which you need to be prepared. Owning and operating your own successful business as an entrepreneur is a good start, but running a franchise is a completely different business model. Talking to others who have franchised their business is a valuable way to get more insight on whether or not franchising is the right choice for you. Whether your business is a good candidate to be a franchise involves many factors, including having a replicable business model, solid unit profitability, a long-term viable and sustainable business model, and your own ability to change, adapt and grow as a franchisor.
Where do I Start Expanding?
This is one of the most important questions you need to ask when starting to franchise your business. You’re taking a big leap franchising your brand to someone else, and you need to be sure that wherever you and your franchise partners grow there’s a market for your service. The specifics of choosing a new market will vary from business to business. Winmark Franchise Partners will help you uncover the best plan for strategic growth for your business based on market and territory analysis, support infrastructure, brand centricity, competitive landscape and the overall strategy for the business.
I Have Decided to Start a Franchise, What Now?
If you are confident this is the right move for you, call Winmark Franchise Partners at (866) 994-5191 or contact us. After an initial discussion and evaluation, we can formalize our relationship and begin to help you discover if franchising is right for your business.