Franchising a business

fredjclaus

I've been toying with the idea of operating a specialty photography company. The idea is just a plan right now, I have not actually started working it as a business myself, but I was thinking about the franchising opportunities as well.

Does anyone know how franchising works? Do you have to be working the business concept for so many years yourself before you can franchise, or can you offer the concept as a franchise before you even open your own location?

chrisjohnson

You can do it anytime - but it is obviously an easier sell when you can point to a real business succeeding.

entropysedge

Here are some links from the SBA: http://www.sba.gov/smallbusinessplanner/start/buyafranchise/index.html
http://www.sba.gov/smallbusinessplanner/start/buyafranchise/serv_sbp_s_franov.html

SamirD

Franchising can be expensive, but it can also be lucrative as hell, even if you don't have a real product. There's a lot of profitable franchise companies out there that don't serve their franchisees and just burn through them and their cash. And legally, it's pretty hard to stop a franchisor even when they are doing illegal things. All of this is from personal experience on being the franchisee end of a bad deal...

fredjclaus

Thanks for the information everyone. My problem is I think BIG and don't even consider the small steps you need to get there. I think I will just work the business myself then possibly franchise it later.

SamirD

It's definitely important to build a solid business before even considering franchising. And the biggest part of franchising is value--can you sustain value to your franchisee that they can't get otherwise?

The hotel industry (which I grew up in), is a good example of added value. An unbranded property can have as much as 60% less revenue than a property associated with a brand. And even with the extra expenses and overhead of double-digit royalties on gross revenues, it is still possible to make a healthy profit. Something tells me this isn't possible with photography...

chrisjohnson

fredjclaus wrote: »

Thanks for the information everyone. My problem is I think BIG and don't even consider the small steps you need to get there. I think I will just work the business myself then possibly franchise it later.

There are lots of small steps that you will do differently when your ultimate goal is to franchise. For example, you'll invest in the legal set-up, the brand, clear approach to copyright, marketing method, accounting, standardizing processes and even equipment and tools. I don't know what your idea is but I have the impression that many people want to start a photography business but don't know how - which is what a franchise would tell them.

Most people working independently skip a lot of detail and rush into doing what they love - taking the photos. Done properly a franchise can help solve a lot of headaches and keep costs down because key services can be shared.