Starting a business and carving out a segment of the marketplace is a significant challenge that can return great profits. We know what went into getting your business this far, and if your success is due to having a specialized business model or producing a product that enjoys intellectual property protection, you might consider expanding your product’s market penetration and saturation through franchising.
While franchising can be a great opportunity to expand your brand and increase revenue, creating a business plan for a franchise system is drastically different than planning for most other businesses. Offering a business model as a franchise is a major financial investment, and proper strategy is crucial to both short-term objectives and long-term viability.
A North Carolina franchisor strategy and business planning lawyer could help you decide if franchising is right for your business and help develop the next steps to initiate the franchising process. Experienced franchise business attorneys could help you realize your vision by helping you devise expansion tactics that can create results.
Transitioning a business into a franchise can be a wonderful way for a business owner to increase profits. Additionally, the parties who operate the franchises will give a product greater exposure as well as a broader and growing customer base. However, offering a business plan as a franchise opportunity is not right for everyone.
It is essential to consider the opportunities and threats involved with expanding a business as a franchise. Potential franchisors must determine if there is a market for their brand where they intend to expand, identify competitors, and decide the number of resources to be dedicated to this process.
Franchisors must also consider the legal ramifications and potential liability of placing their brand in the hands of franchisees, and exactly how much that privilege is worth. A North Carolina franchisor strategy and business planning lawyer could help business owners develop a thorough expansion plan that addresses all these key issues.
Ideally, a franchisor/franchisee relationship is mutually beneficial. However, this is only possible when both parties meet their obligations under the terms of the franchise agreement. This franchise agreement must provide strict rules concerning the legal rights and responsibilities of both parties.
For example, if a franchisor is considering offering multiple units of their franchise in the same area, they must consider how those units will interact with each other. Every unit should have a set territory to avoid intra-unit conflict and oversaturation of the market. This prevents encroachment claims from arising down the road.
Additionally, franchisors should plan for the continuous growth of their franchise. Having a plan for future marketing and budgeting that considers how the potential influx of cash will affect their company is essential to franchisor strategy and business planning over the long-term. Working with a North Carolina franchisor strategy and business planning lawyer could help companies construct robust long-term business plans to propel their brand into a prosperous future.
Making the decision to offer a franchise opportunity is never one that you should take lightly. Not only does this expose your current business’s model and intellectual property to other parties, but it also creates additional legal burdens. While offering a franchise opportunity can be a powerful way to broaden your revenue stream, franchisors must take special care to draft franchise documents that meet both short-term needs and long-term goals.
Ideally, a franchisor will see significant profits from their venture. To keep this revenue stream, they will need to consider marketing plans as well as how to prevent conflicts in market share between future franchisees. Contact a North Carolina franchisor strategy and business planning attorney today to learn more about how a comprehensive roadmap could turn your business into the franchise network you envision.