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<h4 style="margin-left:0px;">The Next McDonald's (Big Idea)</h4>If A Business Had Access to Unlimited Capital...Should it Franchise?<figure class="image image-style-align-right"><img src="https://ci3.googleusercontent.com/proxy/6be8ztVFESBBI_FuumI2AYd_ix6mWSuNoP86N08scXXuR0rub6pKPnEWAuU5UNcLHheKtoOs1yl7DMOCOB5N5zQxL-wHiBLPwXCEledj_CSX_I5t_RsaGvkFHkzlXw=s0-d-e1-ft#https://dddilaw.files.keap.app/dddilaw/5724f2fc-43c6-4f76-ba28-0ecdde31df29" alt="image"></figure>Unless you are the United States Government that prints money, capital is always limited and must be deployed wisely.One of the greatest advantages of franchising is that it supplies capital. Franchisees use their individual capital and credit to finance and fund the development and operation of new locations. Franchisor’s supply systems, operational know-how, training, and brand, and franchisees supply capital.But...What if your business is successful, well capitalized, and has the cash flow and credit to fund expansion? Should you forgo franchising? Are there any other reasons to consider franchising?In addition to capital, Franchisees supply labor and the managerial effort, time, and oversight needed to develop and operate new locations. The labor asset that franchisees supply is critical and, during our time of tight labor markets and <a href="https://dddilaw.keap-link016.com/v2/click/e7771fb2b5c7146bf89003d770694c28/eJyNkMFuwjAMht8l54akVQu0N4QQqso4oO08RY0Bi5JkiUtVob77wjZtl03a1f782b_vjMAoQ7VmFdNaY6cGljAPLToEQ2trSLUf7WKZy3nCOjSXrbe9Y9X99-Fv4lHPymKZJYxGBxF6PqzWTb3fvu7qfRNRp3xc8j_Toijlj2nztKp3bJr-VMMVaXOL9sAq8j08QmmMwejFd5E_E7lQCTEMw8w4P7P-JDKZpULORZaLVMpFmeZ5UQgVOJ2BO2V0lLY8OkBD4FfsOrQmcHvkg_UX8IHHPDyoEc2JI3_rkeIlyjkw-uuTDYyf90zvcv98-Q==?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">The Great Resignation</a>, the labor asset that franchising supplies is equally important as capital.Having the right balance sheet and access to capital markets is not enough. The United States economy is shifting, labor markets are getting tighter, and social change is happening. As you grow your brand, franchising is a business model that must be considered.<h4 style="margin-left:0px;">News You Can (Actually) Use</h4><ul><li><a href="https://1851franchise.com/5-seasonal-franchises-we-love-2717406">5 Seasonal Franchises You May Love</a></li><li><a href="https://1851franchise.com/seasonal-menu-items-have-returned---and-seasonal-franchise-strategy-has-evolved-2717410">Seasonal Menu Items are Back</a></li></ul><h4 style="margin-left:0px;">Killer Brands</h4><figure class="image"><img src="https://ci6.googleusercontent.com/proxy/iQ0f45EmeWcQAkTZ6_Ar6jjUuzMwf7ojwBh8Ft9g--fZ5ETNF--G0y9R0BP8VSb0x4HUM6U9ssx1qkGU3ROhZqLXR3eG-tzauU54rOKikGLcwgGupvEHHv8LzuouJQ=s0-d-e1-ft#https://dddilaw.files.keap.app/dddilaw/68d10bc6-baaa-4dad-93d9-7616b769bb6f" alt="image"></figure><a href="https://www.joshuatreeexperts.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">Joshua Tree</a> - A service based franchise opportunity that combines tree care, lawn care, and pest control in one franchise. The team at Joshua Tree have developed winning systems that allow franchisees to market and support three service offerings that generate repeat business and a loyal customer base. The Joshua Tree FDD includes detailed Item 19 disclosures that demonstrate substantial sales and extremely strong margins.<h4 style="margin-left:0px;">Franchisees Kicking Ass: The Franchisee Is King</h4>Why I Bought: Skincare and Beauty Industry Leader Grows Emerging Skincare Brand Heyday’s Footprint in PhiladelphiaJohn Busenbark, a businessman and beauty industry guru with a 20+-year career in consumer products, is now leveraging his decades of high-level experience to expand Heyday’s presence in Philadelphia, becoming the first franchisee for the brand in the City of Brotherly Love.For <a href="https://www.linkedin.com/in/john-busenbark-59b65826?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">John Busenbark</a>, the transition into becoming a <a href="https://www.heydayskincare.com/pages/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">Heyday</a> franchise owner seemed rather natural. Armed with 20 years of experience in consumer products with an emphasis and expertise in beauty, he has worked — in a leadership capacity — for some of the best beauty, haircare, cosmetics, fragrance and skincare companies in the industry, including Unilever, L’Oréal, and Coty.The Salt Lake City, Utah, native moved throughout the West Coast and had the chance to live in California, Arizona, Texas, and Oregon before settling himself in Glenside, Pennsylvania — the state where he would launch his first <a href="https://1851franchise.com/heyday">Heyday</a> location after he saw an announcement in a trade magazine.Now, with his Heyday location set to open in summer 2022, Busenbark is excited to play a role in helping local clients develop their own personalized skincare routine and experience the tailored services that Heyday is known for.<a href="https://1851franchise.com/heyday/why-i-bought-skincare-and-beauty-industry-leader-grows-emerging-skincare-brand-heydays-footprint-in-philadelphia-2717153">Read More</a><h4 style="margin-left:0px;">Yo Broker, Sell My Franchise</h4><a href="https://1851franchise.com/digital-vs-traditional-where-should-i-spend-my-franchise-sales-budget-2717401">Digital vs. Traditional: Where Should I Spend My Franchise Sales Budget?</a>To say the franchising industry has taken a new shape in the last two years is a huge understatement. Traditional marketing strategy has been uprooted in favor of new innovative strategies, but even despite the changes COVID-19 has brought, many brands have found a means to utilize traditional sales strategies to their advantage.1851 Franchise took a deep dive into this new landscape of strategies and advancements, comparing the old with the new in an ever-changing landscape.Digital: Website Design<a href="https://www.fastcasual.com/news/restaurant-app-use-rising-consumers-ordering-less?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">Digital ordering</a> has been an ongoing craze in the restaurant franchising industry, and many brands are being left behind if they don’t adapt to the trends of delivery service.The franchising industry at large can take a page out of this book, and recognize that online ordering is <a href="https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">more popular</a> now than it has ever been. As sites like Amazon have only continued to progress over time, the development of a comprehensive website can quickly catch the attention of a modern consumer.Allocating a hefty amount of a franchise sales budget to a digital web design strategy can ensure that a brand follows the digital trends that consumers are following. Larger franchises can take advantage by hiring on a full team dedicated to website development, while even an emerging brand can commit a significant amount of money toward a website sales strategy with outside consultation.Digital: Social Media AccountsIf website design is one way for a brand to separate itself, social media is another method brands can use to gain recognition. Brands are easily recognized on social media with a <a href="https://www.rivaliq.com/blog/wendys-social-media-strategy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">committed strategy</a> in place, and this level of recognition can often require a team dedicated to these duties.<a href="https://1851franchise.com/digital-vs-traditional-where-should-i-spend-my-franchise-sales-budget-2717401">Read More</a><h4 style="margin-left:0px;">The Bottom Thoughts</h4>Franchising is a beautiful thing for many businesses. It is a two-way street of opportunity -- both for franchisors and franchisees alike.Why do entrepreneurs franchise?Most likely it is a combination of reasons:<ol><li>They have created a model they believe is scalable and can be duplicated.</li><li>They may or may not have the financial resources to scale at the pace the market demands, thus, are willing to allow others into the business in exchange for royalty and to offset speed and cost to expand.</li><li>Someone asked them about franchising opportunities.</li><li>They built the model with franchising in mind.</li></ol>No matter what caused the entrepreneur to franchise, once official (<a href="https://www.franchiselawsolutions.com/blog/the-franchise-registration-states?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franx-what-franchising-is-and-should-you-franchise-2717437" target="_blank" rel="nofollow">https://www.franchiselawsolutions.com/blog/the-franchise-registration-states/</a>) they now have a pathway to grow through a collective.Once a franchise, a few things to consider:<ol><li>It is not easy to sell a franchise -- and arguably even more difficult as an emerging brand. Why? You are convincing someone to invest their life’s savings into a business where they really don’t have much control over -- and, most likely, are also quitting a job or shifting a career focus.</li><li>You will battle many franchisors for deals. Why? Everyone wants qualified and ready to buy leads -- thus, they will spend $$$ to snag them.</li><li>You will also compete against the broker networks for deals. They have infiltrated local markets and have a firm grip on those raising their hands saying they are interested in owning a franchise.</li><li>You will absolutely, 100 percent have to support your franchisees. They will need you to drive their success. And their success will drive yours.</li></ol>So, should you franchise? If you have a business that is profitable, a plan to support franchisees, a plan to grow your business, and an ultimate exit strategy in mind -- then, franchising could be a great answer to the next level of your business growth.

FranX | What Franchising is and Should You Franchise?

1851 Franchise

Franchising is a beautiful thing for many businesses. It is a two-way street of opportunity -- both for franchisors and franchisees alike. 

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