Build a Franchise Empire

[eternalsunshine]

So you are running a successful business, and you have all the right connections, the great automated system to run the business smoothly.

Has anyone taken their business onto the next level? Has anyone here built a successful franchise?

Any input and sharing of experience is appreciated. Thanks.

[MattV]

I can't really contribute with sound arguments, but I wanted to share that I too dream of building a franchising empire.

The little I can say is:
1) Mc Donalds is a Real Estate empire, not a gastronomic one. To buy a franchise is a booby trap. The key is obviously to sell one.

2) I'd suggest reading Eric Schloesser (or Schlosser?)'s book Fast Food Nation. I didn't enjoy its anti-capitalist message, but it does give great insight into both the history of franchising, and particularly the psychology behind it.

3) BRANDING BRANDING BRANDING

[richkid]

I have a friend that is the accounts person for a security company that is just going through the franchise stage now. cant really tell you anything though..

[JLeezer]

1) Mc Donalds is a Real Estate empire, not a gastronomic one. To buy a franchise is a booby trap. The key is obviously to sell one.

I completely agree with the fact that McDonald's primary business is real estate, which has been a widely know fact for decades. But I completely disagree with your next statements. Many, many owners have made amazing returns on their investments. I think that saying buying a franchise is a booby trap is incorrect if you understand the purpose of buying a franchise.

[Gaulkin]

Learn how to read, hes asking about making a company into a franchise and selling it to investors not buying into a franchise.

[eternalsunshine]

thanks mattV, will definitely look into the book.

so anyone else has any experience in developing their own franchise empire?

[matt_15]

to expand into a franchise, I think you probably need a lot of investors and a very good brand .do you ? or am I wrong ?

[allysa]

Expanding a franchise is good to have an investor esp when you don't have enough capital. A good brand name must be take into consideration since your selling it to your investor.

[MattV]

Since I seem to point out the obvious here it goes

There a many many choices when it comes to eating a hamburger or a donut, but if every place you go to you found different brands (just different logos), you'd be forced to JUDGE every new donut or burger house. When you want a donut you don't wanna judge, you just go to Krispy Kreme.
And that's what I mean by branding: the public feels a lot more compelled to go to old places where they feel at home, even though they don't recognize this particular store opened just a week ago. The you can add variety into the menues, a thing we all know happens anyway.

[eternalsunshine]

Branding is definitely most important in building the franchise empire. Currently, my business is doing very well in our local district. We currently have two branches and find it very difficult to main. That is the reason why we want to start developing it into a franchise.

Having said that, the control system of building a franchise seems to be the most difficult problem for us right now. We haven't figured out a way to guarantee good service yet. :T

We gave out our first franchising license to a franchisee and we received numerous complaints over bad service. Not really sure what to do. Anyone has any suggestion?