3 Signs You Need To Know For Franchising Your Own Business

There are many reasons why franchising is so popular, most especially among American entrepreneurs. Franchisors benefit by using other people’s fund to efficiently and quickly expand their companies and earn more cash without risking assets with lenders or having the inconvenience of negotiating with the investors.

Initial franchise fees provide the franchisor the capital required to create their brand and fund future enterprise.

Becoming the franchisee of a business can be an important option for someone who has the motivation and entrepreneurial skills but does not want to begin a business from scratch, that’s why they look for businesses which they can also own. That’s why it is necessary to keep these three signs in mind that the company is ready for franchising.

  1. The business should be easily cloned and replicated for expansion

A franchise should be able to survive outside of the local town, the region, state, and the country itself. It is one of the largest mistakes that some entrepreneurs make when jumping too far and too fast, because they just franchise a business without thinking if it will succeed.

The owners may have vast networks which keep the people coming. If their prosperity relies on something particular to the location, their personality, or the staff, then it will be difficult for them to prove to others that they can enjoy the exact result as they’ve had.

But, if there are no constraints that would hinder other entrepreneurs from taking business service or products, and clone it elsewhere, then the company is ready for franchising.

  1. The business has been consistently profitable over a period

Typically, if the firm is in a mature industry, such as printing or food service, it is necessary that the business needs to be at least three years and with a solid record of profits.

However, it is different for new niche businesses. If a business demonstrates an innovative and unique method and has proven its profitability, then it might be in the company’s best interests to franchise immediately to earn regional recognition as the leader in that niche.

  1. The business should be appealing for thousands of people to own and run in their communities

Lastly, the company is ready for franchising if it is already famous and its popularity can be reproduced, and if it is already engaging enough for others to invest their funds, time, and efforts in the company.

People mostly don’t want to franchise an average venture. Instead, they want to buy a systematized and well-organized business that produces revenue and is fun to own and operate.


Business owners need to accept that franchising their businesses successfully will demand some short term sacrifices regarding money and time. If it’s done appropriately and thoroughly, it can avoid bankruptcy and debt settlement, and it could also mean the development of the business to a bigger regional or national markets.