How To Grow Your Business Through Franchising

Do you think your business is unique? Have you considered replication through franchising? Do you have the necessary skills to use franchising as an expansion strategy? While it’s not the right strategy for everyone, for some companies the explosive potential that franchising affords is unparalleled in the world of business growth. Franchising has many attractive features, particularly when compared with more traditional methods of expansion such as opening more outlets on your own. Typically referred to as company stores, you own and operate these locations yourself. You provide the entire investment for the startup, and while you earn all the income, you are also responsible for the expenses. That’s why more and more entrepreneurs are choosing franchising as the best way to expand a great business quickly with minimal capital and risk. Here are a few reasons why:

• Franchise owners are highly motivated operators
• Franchisees assume the risk of succeeding or failing
• Franchises can open quickly, gaining an edge on the competition
• Franchisees are responsible for all hiring, leases, and unit-opening expenses, reducing your risk
• Franchisees are easily attracted because buying into a proven concept minimizes their risk

Is your business "Franchisable"? Before making the decision to franchise, you must first determine whether franchising is a viable strategy for your particular business.

BC Business Brokers, an affiliate of Sunbelt, can help you analyze your business and perhaps, take it to the next level. If you are contemplating the sale or expansion of your business and would like to discuss your options, contact our Nanaimo office at 1-877-289-0969 – we can help you. Feel free to visit our local website at http://www.bcbusinessbroker.ca/ or www.sunbeltnetwork.com/vancouverisland.





"Franchise Homework"

Buying a franchise is a major decision in which many factors should be considered. The article "Do your homework before you buy a franchise", by Tony Wilson, can help potential franchise investors making the right decision by reviewing some important issues.

Franchised businesses are never supposed to fail. But on occasion, they do.

That's why doing your homework before you “buy” is so important, so the prospective franchisee can avoid disastrous mistakes and the agony of defeat. Legally, franchising is very document-intensive and it is important for prospective franchisees to understand what they are signing. 

Here are a few matters to keep in mind when thinking about buying a franchise:

• Although you may be purchasing the tables, chairs and other assets related to the business, remember that, conceptually, you aren't buying. Instead, you are acquiring the legal right to use a franchisor's business system and trademark for the term of the franchise and any renewals. When that's over, the franchisor has no obligation to offer you a new franchise so, in some ways, you're just renting the rights.

• If you're living in Ontario, Alberta or PEI, has disclosure been provided to you under the laws of those provinces? Have you read the Disclosure Document and Franchise Agreement and discussed it with your legal and financial advisers? If you live in another province, is the franchisor providing you with a copy of its disclosure document (and if not why not)?

What is Sunbelt?

Company Overview

Sunbelt is the largest business brokerage firm in the world, making it the dominant force in the industry. Since 1978, the Company has evolved into a business brokerage network including 300 offices throughout the United States and 30 foreign countries. We currently broker the sale of approximately 4,000 businesses each year.

Our 1,400 business brokerage professionals are dedicated to providing our buyers and sellers with superior service throughout the entire buying or selling process. Sunbelt's experienced methods make the transition smooth and uncomplicated.

Sunbelt business brokerage offices can help those buying or selling a business in any of the four areas of the private business market:


Main Street Businesses

General businesses that usually have gross sales of $1,000,000 or less per year and have 20 or fewer employees (95% of US businesses fall into this category).
Franchise Sales Sunbelt is pleased to be the business brokerage firm that represents a select group of franchisors with a proven track record of success in their field. When you buy a franchise, you are in business for yourself, but not by yourself. These franchisors have proven business systems and known names in their respective markets.


Franchise Resales
Thousands of existing franchise businesses resell every year, often for "human driven" reasons: the owner retires, dies, is in poor health, is getting a divorce, is relocating or experiences other life-changing circumstances। We, as a business brokerage, always want to know why someone is selling a business, and so do you. Depending on the circumstances, the sale of an existing franchise may present a good business opportunity for the buyer. An existing franchise has the advantage of being an existing business plus the ongoing support provided by the franchisor. Those looking to buy a franchise can benefit from the professional assistance provided at Sunbelt.

Middle Market

Sunbelt is a market leader in managing middle market transactions in the range of $3,000,000 - $30,000,000.