Franchising offers you a chance to go into business for yourself, but not by yourself. Franchising offers you proven systems, support, guidance, and an experienced partner that has a vested interest in your success. Currently, there are over 900,000 franchised businesses in the United States generating over $2.3 Trillion of economic activity. (International Franchise Association).

To franchise or not to franchise…that is the question.  You may be aware that others in your industry are currently franchising and crisscrossing the United States with new locations.  Just because others are franchising, however, does not mean that this should be the path that your company ventures down.  Growing organically through opening more corporate units, licensing, or distributorships may be more viable options.

The St. Gregory Development Group can help you determine which of these distribution methods best fits your personal business philosophies, your capitalization, and your growth timeline.  For the purposes of this website though, we will focus on franchising and help you determine if it is right for you.

Franchising provides business owners a growth strategy. We are under the belief and assumption that your business is currently successful and profitable.  In addition, your company currently may have momentum and has now branched out to new markets outside of where you are based.

The St. Gregory Development Group usually asks a series of questions to better understand how you see the future for your brand:

Now, on the flipside, if you have decided that your growth strategy is not to grow, we want you to understand the potential consequences.  The first consequence is the potential loss of momentum.  In business, you don’t simply stand still if you’re not moving forward; you could begin to fall behind and may lose the significant traction that you have built over the past year.

Franchising can provide a unique source of capital that may fuel your expansion plans.  Chances are, your industry traditionally charges a franchise fee between $10,000 and $50,000 per unit for a territory.   With nearly 90% of the United States population living in urban and suburban areas (US Census Bureau), the potential market for your company could eventually support up to 1,000 – 30,000 units (depending on the size of the territory).  Even if the maximum units your brand could support was 1,000 and you reached 1/10th of you goal (100 units), franchise fees alone could generate upwards of $5M.  In order to determine which end of the sale spectrum you want to fall, we will work collaboratively to detail the investor profile and the projected number of franchised units.  In the end, it’s your business and we want to grow with the right people and at a pace you are comfortable with.

The theme of the 2nd habit in Steven Covey’s book, “The 7 Habits of Highly Effective People” is to always start with the end in mind. Habit two is based on imagination…the ability to envision in your mind what you cannot at present see with your eyes. It is based on the principal that all things are created twice. There is a mental creation (first) and a physical creation (second). The physical creation follows the mental, just as a building follows a blueprint. If you don’t envision what you want your brand to look like in one year, five years, or beyond, then you empower the outside world to shape your business by default.

As part of this ongoing franchising process, The St. Gregory Development Group will push you to begin with the end in mind. We believe that it is critical to determine your exit strategy at the inception of the business. This will provide you with a clear vision of your desired direction and destination and help in determining whether or not franchising is a viable option.

Read more about how St. Gregory Development Group can help with your Exit Strategy