If you have a successful pool business, you might consider franchising your business to increase your profits and expand your brand. Before you create franchise opportunities, you should thoroughly explore the various pros and cons to franchising. This will aid you in developing an effective franchise plan so that you can avoid pitfalls and ensure that your idea to franchise goes smoothly and successfully.
Advantages of Franchising
Franchising your pool business comes with a wide variety of advantages for you as a business owner. You should know what these are because they will help you in creating your franchise plans. Advantages include:
- Provides expansion capital: If you are looking to expand your business, you need capital to purchase a new location. If you franchise, someone else will be supplying this capital for you. Whether you allow for one franchise or dozens, those purchasing each franchise will pay the capital for all of these. This will save you millions while still allowing you to expand your brand.
- Accelerates expansion: If you work to expand your business on your own, this can take several years to pull off. However, when you franchise, you can open several new locations at the same time. This allows you to rapidly expand your business.
- Avoid employee-related problems: You only have to worry about the employees at your specific location. The individual franchise owners will manage the employees at all other locations.
- Franchise owners are motivated: Franchise owners put down a large sum of money to purchase a franchise and they are motivated to make the franchise succeed. This means that you are more likely to have several thriving locations.
Disadvantages of Franchising
There are a few disadvantages to consider when selling franchises. Considering these helps you to develop an effective franchise plan:
1. Sharing profits: When you sell a franchise, both you and the franchise owner get a share of the profits. Keep this in mind when you are making your profit projections associated with business expansion.
2. Limited control: When you sell a franchise, you split the control with the franchise owner. While the franchise follows the same business plan as the parent company, individual owners will run things a bit differently than you do.
Once you make a decision to franchise your business, you should create a solid plan. Decide if you want to limit the area in which you want to franchise, such as keeping all stores in the same state, or if you want to go nationwide. You should also consult a lawyer to make sure that everything is done per the law and for the right price.
