How to Expand Your Business Though Franchising 2014 | Page 26

5

1

Advantages to Franchising is a vehicle for the
expansion of your business.
Franchising

2
Franchised growth is funded by
third-party / franchisee capital.

What are the Current Market
Conditions for Selling Franchises?
A question that comes up often and many times is premised on the
fact that the economy is challenging right now.
This question ultimately
boils down to whether or not
now is a good time to sell
franchises. Well, first, every
franchise is different. That’s
guaranteed. What I can tell
you - and I base this on my
own individual experience as a franchisor and I also
base this on speaking to other franchisors - is that even
during tough economic times, many franchisors are
seeing strong demand for their franchise.
Although this may sound counter intuitive it does
make sense. In challenging economic times there are
individuals, very competent individuals, who now
are faced with either corporate downsizing, a lost
job or corporate dissatisfaction, and many of these
individuals have adequate capital and savings, and
they are looking for opportunities to build a business
for themselves. Many consider and prefer a franchised
business.
Also, what I can tell you is that even in tough
economies, there are always going to be businesses
that thrive, and that really gets to execution. Someone
21 • THE INTERNICOLA LAW FIRM, P.C.

will be expanding and succeeding - will it be you?
Your franchisees? Well, the answer all depends on the
action that you take and your execution.

YOUR ROLE AND THE ROLE OF YOUR
FRANCHISE LAWYER: How Much Money
Should You Set Aside to Franchise Your
Business?
Another question that many in this conference asked
relates to how much money do you have to set aside to
franchise your business. This is a very good question,
and it is a very difficult question for me to answer
without knowing the business your work efforts, your
plans and how realistic you are being. But I am going
to be direct and give you some specific answers. First,
let me give you some context.
First consider that there are two stages that you need
to plan and budget for. The first stage is the franchise
development process. The franchise development
process is when you are going to be working with your
franchise lawyer to establish a franchise plan and the
framework for your franchise system. That means your