Franchising Your Business

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Franchising as a means of business expansion

The benefits of franchising as a means of expanding a business are twofold. One, it involves low capital investment by the franchisor as the capital used to expand the network comes from franchisees. Two, by franchising the business, the franchisor places the expansion of his/her business in the hands of people who are motivated to make it work. Having invested what in many cases are their life savings in a franchise, franchisees will strive to make the business successful. Their livelihood depends on it.

Funding the Franchise

For those who decide to build their business through franchising, one of the biggest obstacles is the added cost and the level of funding therefore required at the initial stage. Anyone who is considering growing their business through franchising should give full consideration to the following cost items:

Checklist -- Assessing the franchisee

Franchisee checklist - evaluating yourself Is franchising for you? Take time to consider your own strengths and weaknesses before you enter into serious discussions with any franchisor. This checklist is designed to assist you in this assessment.

Checklist -- Procedures for selecting franchisees

Sales of franchises should be made by a set procedure of which an example is set out below. Individual franchisors will have their own specific procedures. 1. Receipt of inquiry from prospective franchisee.