Should You Franchise Your Business
Congratulations! If you are considering franchising your business, it means that you have a successful blueprint for a financially profitable business. You may already have more than one location, or have considered expanding due to your success. As you continue to grow, you may have thoughts regarding the exciting possibility of franchising your business. Learn more about your legal rights and if this business structure would be one that would best suit your business and financial needs.
A franchise is a business operational structure that will allow you to take your intellectual property and branding and allow others to use this to grow your business, and allow other business owners to use your already existing business model to also profit. The business owners that would consider purchasing your business model, intellectual property and branding are called “franchisees.” Making the decision to actually create a franchise is a difficult one. There are many legal and financial considerations, and before making the decision, you should fully explore whether or not this particular business expansion would be appropriate for your unique set of facts and circumstances.
Franchising a Business – Advantages and Disadvantages
There are many legal and tax practicalities that must simply be addressed before making any decisions regarding actually starting a franchise. Tax and corporate law will be different on franchises, as well both personal and professional liability. As the owner of a profitable and successful business, you will want to take a serious look at both the advantages and disadvantages of possibly franchising your business before you make your decision.
Advantages of a Franchise
- Exponentially grow and scale your already successful business
- Consistent branding and marketing for your intellectual property and business model
- Decreased costs as you grow, as other franchisees will purchase your business model and branding
- Excited business owners that believe in your product, service and want to use your branding and business model
- Recurring and consistent revenue
Disadvantages of Franchising
- A loss of complete control over every specific franchise, meaning that a business owner will have to truly trust their franchisees
- The steep initial financial investment to create a franchise network
- Possibility of legal costs to create a franchise business plan
Different Types of Franchises
Along with all of the other decisions you will have to make regarding the possibility of starting a franchise, there are also different types of franchises. A single unit is only for one location, and may be the way to start out to see if franchising is right for you. A multi-unit franchise is one that has multiple locations and multiple different storefronts. If you know you have many people already interested in a franchise, this may be the right option for you.
Let Us Help You Today
If you are considering a franchise, you are already a successful business owner. Make sure to protect yourself financially and legally by contacting an experienced Jupiter business attorney at the law offices of Julianne Frank, Esq. at 561-320-7971 for a free consultation today.