While building a successful business from the ground up is an immensely impressive accomplishment, plenty of people don’t want to start from scratch. For everyone looking to jump straight in, franchising and licensing are great options. They have both served to launch and further careers in huge ways.
Franchising is where a business’s brand and operations are shared in exchange for a fee. When someone opens up a new franchise, they are run by the franchise owner and operate the same as all other franchise locations. On the other hand, licensing allows someone to use a business’s registered trademarks in exchange for a fee.
Licensees typically have more control over what they do with the material than franchisees do. For these reasons, franchises tend to be more successful for service-based businesses and licenses tend to be more successful for product-based businesses. Plenty of businesses have seen immense success just licensing a product for a specific region. The opportunity for success is right there.
Franchising and licensing can be hugely successful, but it’s no guaranteed sure thing. To help you out, we’ve compiled four tips from the most successful experts in the field on how best to franchise and license with your business:
Make It Personal To You
“Three pieces of advice: join a great team, a team that you align with in their values and their vision. Invest in something where you can build a business that works for you, not just a job where you work for yourself. Then, decide to follow your heart and do something you love, not just something that will make you money.” – Brad Sugars, ActionCOACH
Look For a Proven Success
“Look for a solid franchisor that has healthy financials, a strong management team, a positive track record of success, and high franchisee satisfaction. Also, think about choosing a business deemed essential during this pandemic.” – Catherine Monson, FASTSIGNS
Get It Right the First Time
“The key consideration when getting into any new venture is to build strong foundations from the start so you ensure you are built to last. Have a focus on building a legacy and doing what you do better than anyone else.” – Pip Wilkins, British Franchise Association
Plan in Advance
“Entrepreneurs investing in a franchise should adopt a clear strategy for their business operations. Understanding rent and fixed costs, cash runway, margins, labor needs, and tolerance for risk are vital components of the long-term health of your business.” – Robert Cresanti, International Franchise Association
Get the Help You Need
When you don’t want to take a risk on a new idea, why not see how you can infuse your personality into an established business? Franchising and licensing are great options for people who want to run something as only they can. For any help with licensing or franchise law, contact Cueto Law Group P.L. today! From boardroom to courtroom, we’ve got you covered!
