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8 Hard Truths About Franchising Your Business (Before You Scale Too Soon)

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Opinions expressed by Entrepreneur contributors are their own.

As a franchise speaker and consultant, I work with a lot of business owners who want to franchise. One of the first things I tell them is that good franchising is about more than expanding a business. It’s about transforming one. To do that well, there are a few things you need to know.

1. Franchising doesn’t fix your business — it exposes it

I spoke with an entrepreneur who had developed a recycling concept for rural communities. It was an interesting concept, but when we looked at the numbers, his one existing location wasn’t profitable. That changed the conversation. He wanted to scale something that hadn’t been proven, and it soon became clear that what he really wanted was less a franchise system and more a cash infusion.

Franchising takes whatever’s already there and multiplies it. If the foundation isn’t solid, all you’re really doing is spreading the problem faster.

2. If it only works because of you, it doesn’t work yet

Many successful businesses rely on their founding operators. They know their customers, they solve problems quickly and they stay close to every detail. Often, they’re what make the business thrive, rather than the operation.

At some point, I’ll ask: could this business succeed in a new market, where nobody knows your brand, without you there to hold it together? If the answer isn’t a confident yes, the business isn’t ready to scale. Your future franchisees won’t have your instincts, judgment or ability to step in and fix things on the fly. The operation needs to run without your involvement.

3. If it can’t be taught, it can’t be franchised

There’s a difference between a successful business and a scalable one. I’ve seen operations that rely heavily on judgment, intuition or unwritten rules. That might work for the founder or a well-trained internal team, but it doesn’t translate well to independent operators who need clarity and consistency.

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