What Companies Can Help You Franchise?

Franchising your business is a big undertaking. It’s expensive and time-consuming, and the process is likely to direct immense time and effort away from your core business. And then there’s the risk it might not even pan out. 

But for many companies, it’s the right decision, allowing them to expand their reach exponentially — and eventually, bring in new streams of revenue. 

To determine if franchising the right move, it’s important to assess your company’s success and universal appeal, says Corey Elias, director of franchise development at Franchise Captain.

“Is the brand successful enough?” says Elias. “Do other markets need something like this, or is this business something that’s specific to your market? These are important questions to ask because you need to know if the success of the brand can be replicated.” 

Franchising is essentially taking a proven business model and asking people to invest in it to help you grow. “If you only have one corporate location, you don’t have a proven business model,” says Elias.

But if you think your business is franchise-worthy and you’re ready to take the plunge, there are companies and people who can help.

Franchise Brokers 

Elias, a franchise broker who works with more than 800 different brands, recommends talking to a broker first to see if your business has the potential you think it has. “I work with a lot of emerging companies, so I see the gamut,” he said. 

The other thing a franchise broker can help you with is determining whether you have the right personality to run a franchise in the first place. “Running a business versus running a franchise are two totally different things,” Elias said. “They also require totally different skill sets. You might be able to run your own local doggy daycare, but can you help and support other owners?”

Franchise Lawyers

Enlisting the services of a franchise lawyer to help you build your Franchise Disclosure Document is essential. “You need to think about the laws in every state,” Elias said. “For example, many franchises don’t even go into California because rules are so strict. There are registration states and non-registration states. New York, Hawaii, Illinois, Indiana Maryland, Michigan, Minnesota, North Dakota, Rhode Island, Virginia, Washington and Wisconsin are all Franchise Registration States, which means you have to go through a bunch of hoops. A franchise lawyer can counsel you so you don’t end up making a mistake.”

Franchise Consultancies

Kind of a one-stop-shop for the franchising process, franchise consultancies guide entrepreneurs through the entire franchising process. “They build a blueprint of all the things you need to do and take you through it step-by-step — from management to training to marketing. Not only will they make sure you have all the systems in place to support growth, but most of them also have relationships with broker organizations, which is the best way to get your brand out there,” Elias said.

Marketing Companies

If you don’t need all the services of a franchise consultancy, you’ll still need a marketing team to help you launch your franchise. “Marketing now is very digital-driven, so you’ll need an SEO agency that can focus on helping you get your brand out there,” Elias said. “It doesn’t have to be a franchise-specific marketing company, but you’ll have more success if it is.”

Financial Advisors 

“It’s expensive to franchise — you’ll need marketing dollars, legal dollars, and more,” Elias said.  “And then there’s the time that it’s going to take away from your core business.” 

A financial advisor can look at your company’s balance sheet to determine whether you have the capital to get through what can be a very long process. 

“The new franchise sales cycle is very long — it can take months before you get a franchise fee. If you’re working with broker organizations, you’ll probably be giving them half of that fee,” Elias said. “Then there’s the marketing expense, so another big piece of that fee goes away. As a franchisor, you’re not really seeing much from that fee. Instead, you’re making money off royalties, and in some cases that can be two years out.”