Call Us Today! 949.282.7304|

Franchise a business

10 Signs you should or shouldn’t franchise your business

Before you ask how to franchise a business, you should ask if you SHOULD franchise your business. Not all businesses will make good franchises, and not all business owners will make good franchisors (or franchisees, for that matter, but we cover that in a different article). To really know if your concept is right for franchising, you should work with a competent professional to do a feasibility study, but here are some quick flags that franchising may or may not be the way for you to go:
Ten Signs you should franchise your business
1> You have a proven concept
2> You have a team in place
3> You have been approached by multiple people asking to buy a franchise
4> You are profitable
5> Your business runs smoothly without your presence
6> Your local business growth is starting to plateau, and you are looking for the way to the next level
7> The idea of helping other entrepreneurs is exciting to you
8> You can teach others to do what you do
9> Your market can weather an economic downturn or recession
10> Your business is high-margin
10 signs you shouldn’t franchise your business
1> Your are looking for a way to save your business
2> Your business would likely fail without you behind the wheel
3> You are struggling financially
4> You can’t imagine moving your location, it wouldn’t work as well anywhere else
5> You can’t take a day off or go away on vacation because the business would fall apart
6> If your business had to give away 5% of its gross sales, it would fail
7> Your business is very reliant on something that is popular in your area (surf shop, ski shop, etc)
8> Your industry is facing technological obsolesce
9> You love what you do and can’t imagine […]

The Outsourced Solution

hat does an outsourced franchise solution really look like? What are your roles and responsibilities, and what does is your franchise consultant do for you?

First, it’s important to understand that there is no such thing as one size fits all. Where you are in the lifecycle of a franchisor, what expertise you have in-house, and what type of franchise program you offer will all have bearing on the divisions of labor. If you are just learning how to franchise a business, your franchise consultant will most likely be intimately involved in most of your day to day decisions; what executives to bring on, how to market your franchise, what information should be contained in the FDD, how to use your Operations Manual, and much more. If, however, you are a mature franchise just looking to outsource your sales efforts, your franchise consultant may be less involved in your day to day operations, though they still need to have an excellent understanding of your offering.

Typically, in an out-sourced solution, the roles and responsibilities are clearly defined at the outset. The franchise consultant typically guides this conversation, as they should have the expertise to know what should be outsourced, and what should be kept in-house. Though a devision of labor between the franchise consultant and the franchisor will be agreed upon at the outset, this will also be fluid, as the needs and resources of each company change.

In the end, an outsourced solution is a partnership. Make sure that you partner with the right people, and make sure the terms of the partnership are clearly defined. Learn more about partnering with Franchise Beacon.

Why You should Choose Franchise Beacon as Your Franchise Consultant

hen wondering how to franchise a business, many people will often confuse Franchise Beacon with the types of service that one can expect from Brokers. The truth is that we offer to completely different services.

The primary role of Franchise Brokers is to provide pre-qualified leads to franchisors in return for a commission. Basically the Franchise Broker sends the Franchisor referrals. They do this by talking to the client, finding out what the client’s interests are, and then finding 2-4 concept (out of the 100-200 that the broker represents) that A> fits the client’s needs B> has good validation and C> pays a high commission.

Your relationship with Franchise Beacon will be extremely different. We work with you during the entire franchise sales process, including helping the client understand the franchise opportunity, providing them with franchise information, and helping the franchisor qualify the franchisee and evaluate if they are a good fit for the franchise business. We also help you evaluate where you are spending your advertising dollars to get the most return on your investment. Beacon will never propose multiple franchises to your leads; they are your leads, and they will be shown your concept.


Here is a comparison of the roles and responsibilities of a franchise consultant VS a broker.



Franchise Beacon

Primary function
Provide Qualified Leads
Full Franchise Development.

Number of Concepts Represented
Generally 50 – 200 Concepts
Under 10

Number of concepts an individual broker or salesperson would actively promote
Generally 50 – 200 Concepts
1 – 10

Generally non-exclusive.  Often, franchisors will have relationships with multiple Brokers.
Generally exclusive.

Reporting obligations

Contractual obligations

Required marketing
None, although they may ask franchisors to attend/sponsor annual conventions
Negotiated levels of marketing expenditure on the part of the franchisor included in most contracts

Success fees only, with averages ranging between $15,000 and $30,000.  […]