One method companies are using to improve their brand recognition is through franchising. While there may be a few new businesses hitting the franchise market, in order to be truly successful, a company needs to have a business model as well as a product or service that is in high demand and can be used in the same form regardless of the location.
Depending on the industry, there are some business that will fit into the mold for franchise opportunities. It is not only the fast-food restaurant idea anymore that have people chomping at the bit to buy a franchise. There are several smaller service oriented companies that are finding out that nationwide growth is possible through franchising. Those looking to offer their business model to others for a fee, have to sure their model works everywhere, and can readily be duplicated. Not all businesses will work as a franchise everywhere. For example, a company in a Gulf coast state may be performing very well in providing toys for summer play at or near the water. This model may perform well in locations near a lake or ocean in warm climates with a long season. However, the same business may not survive its first year in a location at which the sun only shines a few months out of the year and the average temperature is under 70-degrees. Companies looking to franchise need to be aware of locations before they consider allowing someone to buy into their model. They also have to be aware of whether their product or service line is sustainable over time. Too many small businesses franchised their name and services on a hot-selling product only to have it fall out of favor with the general public.
When franchised locations close it casts a pall over the company’s name and reputation and may actually create damages on their contract with franchisees. Business growth is the hopes of all business owners but smart growth has to be the main part of the equation. Selling franchises simply because people are willing to buy them is not a recipe for long-term growth and success. Offering franchises to only qualified individuals in locations where the product or service is readily acceptable will go a long way to insure continued growth and success of a business. Before deciding to franchise the business idea, the company also needs to insure all of their trademarks and business models are protected so they do not lose the exclusive rights to use them. If the symbols on which the company has based its reputation is lost, their ability to grow is also lost.