1851

Franchising is a sizable, duplicable model that offers the opportunity to expand your business outwards. While franchising opens a whole new world of opportunities for a starting or established concept, there are several variables to consider before you take the plunge and transition your company. We spoke with Steve Beagelman of <a href="http://www.smbfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-reasons-not-to-franchise-your-business-2705273" target="_blank" rel="nofollow" target="_blank">SMB Franchise Advisors</a> to get his thoughts on when&rsquo;s really the right time to head into franchising.

1. Don&rsquo;t franchise to save a sinking ship. If your business is declining in sales and revenue, franchising isn&rsquo;t going to act as a Band-Aid and turn around sales. Take a look at the core problems plaguing the location and focus on improving revenue before expanding outwards and asking for people to invest.&nbsp;

2. The concept can&rsquo;t be easily duplicated. The success of a franchise is partly based on the simplicity of the concept. Franchisees who invest in the business need to be able to quickly learn, understand and replicate operations throughout the U.S. For example, if a family-run restaurant relies on certain ingredients that can only be found in a small town and can&rsquo;t be mass-produced, this poses a big shortage as the brand expands outwards.

3. Letting go of the reigns. Being a supportive franchisor means being able to trust a person with running a concept that you once had complete control over. And that can be tough. Franchising requires an entrepreneur to look at the bigger picture, the entire system rather than hone in on the day-to-day operations of a location.

4. It&rsquo;s stressful. Franchising isn&rsquo;t a way to transition your business if you&rsquo;re thinking about heading into retirement anytime soon. Trusting a franchisee with the idea you&rsquo;ve worked hard to establish is a scary reality and its never smooth sailing. As a franchisor, you&rsquo;re there to support at a distance and implement new systems and processes that will make new and existing franchisees successful long-term &ndash; meaning you&rsquo;re always looking ahead at how to improve the menu or implement a new promotion that will propel your brand image forward.

5. Look at the start-up costs. Your business is thriving. It&rsquo;s an innovative idea. However, when you total out the costs, it would be a couple million to duplicate the concept and have it be successful. It&rsquo;s rare that a franchisee &ndash; not having any brand recognition to work off of &ndash; would invest two million in a business that&rsquo;s relatively unknown.

6. Take a hard look at the industry that your business is in. If you run a mom and pop video rental business that&rsquo;s thriving (doubtable!), this time is not the best to franchise. Spend time researching the sector see how it&#39;s trending, the competition you&rsquo;d face and problems that are facing the industry so you have a diverse grasp on what you&rsquo;re truly getting into.

7. Building an experience. Finding a cohesive brand image that works in markets across the country is a challenge. One of the most important components to the success of a new brand and it gaining speed is how its conveyed and viewed by the public. It needs to be able to withstand changing trends, tastes and consumer preferences.

8. It&rsquo;s a process, and it&rsquo;s expensive. Between the legal fees, trademarking, accounting fees, operational fees, starting a franchise can translate into hundreds of thousands of dollars and requires months of preparing franchise agreements and documents to get everything off the ground. It&rsquo;s no walk in the park.

9. Expected the unexpected. Mastering the franchise sector is a completely different animal. It&rsquo;s a nuance. You might think you have the best idea and the best investment, but how do you stand out from the competition and sign franchisees who are looking at several different concepts to put their money towards? It starts with an experienced sales team and builds out from there, but keep in mind that it&rsquo;s a slow curve upward.

10. Be prepared to risk your prize baby. You&rsquo;ve worked so hard to build a family business that you&rsquo;re proud of. You&rsquo;ve put years or even decades into creating a concept that you&rsquo;ve mastered and established in your local community and feel like it&rsquo;s the right time to build it outwards with franchising. Spreading that concept, however, is a huge risk, and one rogue franchisee can ruin the brand&rsquo;s reputation past a point that&rsquo;s repairable.

10 Reasons Not to Franchise Your Business

1851 Franchise

Relate to one of these ten? Why you shouldn’t dive into the sector quite yet. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

10-reasons-not-to-franchise-your-business

ServiceMaster Restore

ServiceMaster Restore - Disaster Response - 1851 Franchise

When Disaster Strikes, ServiceMaster Restore Moves

servicemaster-restore-disaster-response-carmen-coleman

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

10 Reasons Not to Franchise Your Business

MORE STORIES LIKE THIS