Many business owners spend their entire lives working on and in their businesses to ensure they remain productive and profitable.
But if you’ve already done the hard part—building your company’s brand so that it is recognized and successful in your market —why would you consider converting your company into a franchised location?
For most owners, the answer is straightforward: They want to achieve a better work-life balance while ensuring that their companies remain stable and profitable.
Before you make the decision to convert your business into an existing franchise, you need to consider if your company is ready to make this change and do your research to find the best franchise option for you and your customer base.
Is Conversion Franchising Right for You?
When you first opened your business several years ago, you more than likely had a passion to provide a certain product or service and identified a need in your local market that only you could fulfill. Then, voila, your business was born.
You spent the next several years of your life branding your business, advertising it and developing a close relationship with customers, suppliers and partners.
So why would you want to trade some independence to belong to a franchise?
The best reasons to consider conversion franchising include:
- Purchasing power. As a singular small business, you aren’t able to command bulk rate pricing. With tariffs on the horizon and the inflation rates bouncing up and down, continuing as an independent small business owner might become cost prohibitive
- Access to technology. Another reason you may consider converting your business to a franchise is your access to innovation. If your business is very small, it might not be cost-effective to purchase the very technology that could also help you grow your business. Since franchisors serve several franchisees and their employees, buying the right technology isn’t as burdensome for a larger company.
- Exit Strategy. While you may not be thinking about this today, the time will come. Studies show that a strong franchise organization/location almost always sells for a greater amount than an independent business. The differences can be quite significant especially for well run, high recognized franchised brands.
Will You Like Being a Part of the Team?
As an independent owner, you’ve been in charge for years. While it may make sense to convert your business into a franchise location, you may not be ready to do things someone else’s way.
Each franchise has its own set of operational guidelines and even culture. A good franchisor ensures its franchisees adopt the franchisor’s culture so the brand remains consistent throughout multiple locations in multiple states.
And, since you already have a thriving business, you’re limited to only considering the types of franchisors that provide similar products and services that you currently sell. For example, if you are an independent print shop, you will be limited to printing franchises. So, in addition to finding a good franchise that sells printing services, you also need to find one with a culture you can live with.
Finding a franchisor with a similar market presence and business goals may seem daunting, but it’s an important part of your franchise search is you want to remain happy in the long run.
But beyond the cultural fit, you should also be prepared to operate your business according to the franchisor’s business model and do it while paying for franchisee support.
Is Your Brand Protected?
Finally, before making the decision to convert to a franchise, you may need to consider how the conversion will affect your brand.
It’s no secret that once you convert, you very well may have to change your company name, use the franchisor’s logo and colors and follow their processes. Some franchise organizations offer a “dual or co-branding” option like AlphaGraphics.
If you choose a franchisor that already shares your values and will allow you to blend your personal management style into their process-driven model, converting your business to a franchise becomes a little easier and a very smart decision. Your customers might take a while to get used to the new décor adorning your office walls, but once they confirm that the new franchise shares your values, they won’t abandon ship.
The decision to convert your small business to a franchise shouldn’t be taken lightly. Making sure the shared investment in a franchise partnership provides benefits to you and the franchisor you choose may take some time and some soul-searching before the right decision is made. But if you find a trusted partner who will work with you to help make the transition as smooth as possible, you can build the second phase of your professional life as a franchise owner.
About Fortidia
Fortidia is the brand identity of MBE Worldwide S.p.A. – a privately-owned company headquartered in Italy – and its affiliates. Fortidia is a global commerce enabler for SMBs and consumers thanks to its platform including brands providing e-commerce, fulfillment, shipping, marketing and print solutions: PrestaShop, Mail Boxes Etc. (outside the U.S. and Canada.), PostNet, PACK & SEND, World Options, AlphaGraphics, Multicopy, Print Speak, GEL Proximity, and Spedingo. In 2023, the combination of its physical platform – including 3,200 Business Solutions Centers in 60 countries with 14,000 associates – with its PrestaShop e-commerce platform served 1.1 mln business customers worldwide generating €1.4 bln (US$1.5 bln) of System-wide Gross Revenue and €22 bln (US$23.8 bln) of Gross Merchandise Value. For more information, visit the Fortidia Group websites: www.fortidia.com
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