Franchising vs. Expansion: The Tradeoff You Need to Consider

For many business owners, the question of whether to franchise or to keep opening new locations is a crucial one, and one that many do not fully consider. This was the subject of a recent episode of the Amazing Marketing Show, where host Dmitri Smirnov welcomed Dr. Tom DuFore, founder of Big Sky Franchise Team, to discuss the tradeoffs involved in franchising and expansion. Dr. DuFore, who has advised hundreds of businesses and worked with numerous major brands on franchising and expansion strategies, provided valuable insights into what changes when a company transitions from company-owned growth to franchising. He explained that while franchising can put less cash in a business owner's checking account, it offers more leverage in the system. Furthermore, he clarified the difference between franchising and licensing, a distinction which many people misunderstand. The conversation also touched on when it makes sense to open more locations and when this can instead become a liability. Dr. DuFore pointed out the three non-negotiable checkboxes that make a business franchise-ready, and warned against the 'get rich quick' mentality that can destroy franchise systems. Another important takeaway was the understanding of how long franchise sales really take and what early traction looks like. For business owners grappling with the question of whether to scale their business themselves or allow others to do so, this episode offers invaluable insights that could save years of potentially costly mistakes. For further exploration of franchising, viewers were directed to resources provided by Dr. DuFore and the Big Sky Franchise Team. This episode is sure to provide valuable insights for any business owners considering their options for expansion or franchising. By understanding the tradeoffs and factors involved in these decisions, they can make more informed choices and avoid common pitfalls.