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How Franchising Can Help Successful Small Businesses Expand Across the United States: Turning A Proven Local Business into A Scalable Platform for Entrepreneurship and Multi-Market Growth
Subject area: Management and Commerce · Area of research: Technology
Abstract
Thousands of U.S. small businesses have a product, a local following, and a founder who already knows how the unit works. Many of those firms could operate in additional markets. Opening only company-owned locations requires capital, managers, and a corporate bench that most independent owners do not have. Franchising is the other path: the brand and the operating system travel with the franchisor; capital, local knowledge, and day-to-day ownership travel with the franchisee (International Franchise Association [IFA] & FRANdata, 2022). Franchising is not merely a way to add doors. It is a way to transfer a working business system to other operators. That transfer only holds if the original business is worth copying and if the legal and operating infrastructure can support people the founder will never meet.
References
[1] Disclosure Requirements and Prohibitions Concerning Franchising, 16 C.F.R. Part 436 (2007).
[2] International Franchise Association & FRANdata. (2022). 2022 franchising economic outlook. International Franchise Association. International Franchise Association
[3] International Franchise Association & FRANdata. (2023). 2023 franchising economic outlook. International Franchise Association. International Franchise Association
[4] U.S. Small Business Administration, Office of Advocacy. (2022). Frequently asked questions about small business, 2022. U.S. Small Business Administration
[5] U.S. Small Business Administration, Office of Advocacy. (2023). Frequently asked questions about small business, 2023. U.S. Small Business Administration
How to cite this paper
@article{1723162,
author = {David Pinto},
title = {How Franchising Can Help Successful Small Businesses Expand Across the United States: Turning A Proven Local Business into A Scalable Platform for Entrepreneurship and Multi-Market Growth},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {8},
number = {4},
pages = {988-989},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1723162.pdf},
abstract = {Thousands of U.S. small businesses have a product, a local following, and a founder who already knows how the unit works. Many of those firms could operate in additional markets. Opening only company-owned locations requires capital, managers, and a corporate bench that most independent owners do not have. Franchising is the other path: the brand and the operating system travel with the franchisor; capital, local knowledge, and day-to-day ownership travel with the franchisee (International Franchise Association [IFA] & FRANdata, 2022).
Franchising is not merely a way to add doors. It is a way to transfer a working business system to other operators. That transfer only holds if the original business is worth copying and if the legal and operating infrastructure can support people the founder will never meet.},
month = {October},
}