Franchising is the most successful business growth strategy existing on the world stage today. In the United States, the franchised industry has outpaced the overall GDP growth year after year. There are over 745,000 franchised establishments representing over 75 different business categories in the franchised industry and the economic output is $711.4 billion, growing 5.3% in 2016.
Over 80% of our citizens in the United States have a favorable view of franchising. Individuals seeking self-employment are increasingly turning to a franchised business to reduce their risks of business ownership.
Working closely with new franchisees, a newly franchised business can quickly capture market share by opening new locations financed with other people's money (OPM). There are many reasons one would look to ride the wave of franchising. Still, you should move with caution when evaluating franchising as a growth strategy.
There are four questions you should ask:
Our robust due diligence process is based upon an in-depth knowledge of the franchise industry and the core principles of sound risk management and business development. We will help you determine an optimal growth strategy based upon a clear picture of the rewards and risks associated with franchising and recommend alternatives as an interim step or in lieu of if needed.
Paradigm Franchise Group will work with you to evaluate your options for growing your business, connect you with the right resources, and help you find the answers you need up front to ensure that you are not wasting your time or money.
There are specific items that need to be considered when evaluating the franchisability of your business concept. We will work with you to assess your readiness for franchising.
Maintaining a solid profit margin, continuing with your operations, and providing your contractual obligations should a loss occur is critical to your success as a franchisor. Having a solid risk management and insurance program in place will ensure that your company assets and reputation will be protected should something bad happen. Paradigm Franchise Group offers industry specific risk management services that prepares new franchisors for the increased liability exposures that they will incur.
Training, sales and marketing, writing the operations manual are some of the areas that you will need to develop once you become a franchisor. Paradigm Franchise Group will help you evaluate your current systems to determine what areas need to be moved to an outside vendor.
Once our reviews are complete, we will help you determine if franchising your business is appropriate. If yes, we will work with you to conduct a needs assessment and develop the necessary RFP to secure the legal, accounting, sales and marketing, and insurance expertise required to enter the market as a franchisor.
Please contact us for more information.