Franchising your business means licensing your trade name and operating systems to a third party in exchange for payment. However, you will still have some control over your franchisee's operations.
How does franchising work?
You (the franchisor), give a franchise license to another person (the franchisee) that gives them the right to use your trade name and operating systems for an initial franchise fee and ongoing royalties (usually for a specific length of time as defined in a franchise contract).
Benefits of franchising
- Helps you expand your business faster
- Requires less capital than other expansion methods
- Lets you use your franchisees' capital to expand your business
- Helps you gain more market share
- Creates a network of franchisees dedicated to your success
Before you franchise your business, make sure you:
- Get legal and accounting advice from trusted, qualified advisors
- Have an established track record that would attract potential franchisees
- Have a solid business model that can be easily replicated
- Can choose dedicated, qualified franchisees
- Can implement consistent, repeatable systems and procedures
- Can maintain your corporate culture as your company grows
Learn more about franchising
- Canada Business Network guide to franchising
- Canadian Franchise Association's Franchise Learning Centre
If you still have questions, talk to our team. We'll help you find the answers you need.Contact us