FranBiz

Your business is an established local success.

Your customers love you.

Your profits are steady.

You're ready to expand.

Replicating that success in a new location is never guaranteed.  FranBiz can help guide you past the hidden pitfalls of franchising your business.

Do you have a working model, with a minimum of one year of operations and experience? Too often, entrepreneurs rush to market a concept that has been inadequately tested.Convinced their concept is a winner, they hurry to bring others into business with them, fearful their concept will be stolen by a competitor. FranBiz can reduce your fears and help optimize your potential.

2.  Is your brand name or trademark regionally recognizable?

Owning the only company franchise in a large region is rarely an advantage. Opportunities such as brand name recognition, co-operative advertising and volume purchasing power allow franchisees to piggyback on one another’s profiles and successes in the marketplace.  Ongoing corporate support is usually more robust in regions where there are multiple franchise outlets. If you’ve proven your model and are ready to expand, do it in your own community before you go elsewhere.

 3.  Can you offer co-op purchase benefits?

Inventory, advertising, equipment, and supplies all cost less when purchased by a group. If you have five stores in a 20-mile radius, billboard advertising might make sense.  But if you have only one store, it’s probably not the most effective use of marketing funds. If your main vendor only delivers inside a 20-mile radius, opening new franchises within that boundary makes sense to receive group discounts that you can pass on....or you may needa new vendor. "Clustering” stores within a community is a sound business practice. Is this news to you? (Imagine what else we could share...)

4.  Is your concept universally intriguing AND sustainable?

Brands struggle to go national when focused on a singular product, service or technology. Why is that? 

• Computer companies fail to franchise because technology changes too quickly to sell its inventory.
• If the world can survive long-term without a product or service, don't franchise.
• Seasonal products are regional, not national (think beachwear)
• Celebrity endorsements rarely pay off since that 15 minutes is up before the investment is recouped.

5. Do you know the true cost of funding your franchise expansion?

• Cost can vary greatly depending on the concept and scope of the business.
• As the geographic area expands, the costs expand exponentially (the law of diminishing returns)  
• In-house sales people can be surprisingly expensive; area franchise networks may work better. 

FranBiz's founders are intimately familiar with the Mail Boxes Etc® / The UPS Store® concept that committed early in growing its business through such a network. area franchisess purchased the right to recruit new franchisees in a specific geographic area, earning commissions and royalties in the process, and then provided ongoing support to their franchisees. In addition, they built and operated a pilot center as a model training center. 

 6. Where will you get the money to franchise your business?

--Personal savings, second mortgages or liquidation of other assets

-- Banks (with sufficient collateral)

--Private lenders/investors

--"Angel investors” (funding in exchange for an interest in the company). 

--Government lenders (i.e., Small Business Association), will often finance a new franchisee or a proven franchise system.

--Professional Venture Capitalists (VCs) usually prefer those with 3 - 4 years experience in franchising

If you have your own capital, understand all facets of franchising and the legal ramifications, then a "bare-bones" attempt to become a franchisor, using cookie cutter, internet-available documents might cost $30,000 minimum. But be forewarned: this under-capitalized approach is strewn with defunct franchisors. A more realistic figure is $100,000 or more.

If you need capital, or are not 100% confident in your ability to blaze this trail alone, FranBiz stands ready to assist you. We welcome the opportunity to personally discuss your concept with you with A FREE, NO OBLIGATION CONSULTATION with one of our franchising experts is accessible on the link below. We look forward to your inquiry.

Our principals at FranBiz have decades of experience in investment and access to capital.

Complete the short questionnaire below and receive a free consultation to help you decide if you should franchise your concept.