How to Expand a Franchise

Most successful business people are never satisfied with limits. They need the challenges associated with risks. Once you've been successful with your initial franchise, you may consider expansion as an option. If you are pleased with the corporate culture you're involved with, look into getting more units for expansion. Other franchise opportunities may challenge you more and keep you engaged.

Difficulty: Moderately Challenging

Instructions

1. Consider the financing that will be involved with expanding your franchise. The same lender you used for opening your first business may be most inclined to finance your second or third unit.

2. Keep good notes. The franchisor with whom you work will require certain paperwork throughout the year to pay royalty fees and to monitor your operation. Maintain your own set of impeccable accounting books to show a lender when you are ready to expand.

3. Know the company's policies about territories and limits on the number of franchises one owner can purchase. Research the possibility of a master franchising position if you want to continue with expansions.

4. Compare your current results with your early expectations. If you like the income but are not as satisfied with the lifestyle required to run your business or the level of creativity you thought you might be able to use, then consider buying another franchise.

5. Set up an umbrella corporation to envelop all your business endeavors. Then you can have multiple franchises under one company name. Your tax attorney or accountant can show you how easy this is to do.

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