Franchise a business
Ready to franchise your business?
Mark Siebert is the CEO & Sr. Franchise Consultant at the iFranchise Group. Mark was my guest on Money 2.0 and shared great ideas with me for those business owners who own a business and are ready for the next step by making it into a franchise.
Mark Siebert says 15 years ago iFranchise was put together to be a resource for companies looking at getting into franchising and for established franchisors who were encountering problems. Mark says iFranchise has now helped businesses in 54 different markets around the world and says they are the largest consulting firm in the niche market that is the franchise consulting industry.
How do I turn a business into a franchise?
Marks goes onto talk about the initial steps they take in determining if a business is has “franchisability ”. He says that process involves their analysts and senior staff investigating the business and establishing 3 specific things.
- Will the business be able to sell franchises? (i.e. Is it unique, credible, established, making money, etc.)
- Does the business have the ability to be duplicated across multiple markets?
- What will the forecasted return on investment be? (i.e. With the average expectation at least 15-20% by 2-3 years of operation.)
Mark says all three criteria must be satisfied for them to move ahead. He says iFranchise averages around 400 company submission queries a month and only end up moving ahead with 3 or 4.
Mark says that iFranchise is “industry agnostic”, meaning they truly are experts on how to franchise regardless of the industry. He notes that Franchise Times Magazine puts out a list of the top 200 franchises in the US and their consultants at the iFranchise Group have worked with 98 of those top 200.
Mark says over the last 6-7 years they have helped well established companies such as McDonalds, Subway, and Denny’s on various franchise projects. They have also worked with many start up projects, such as Massage Envy.
Mark goes on to discuss how they assist new franchisors, particularly when they are attempting to grow in a market that is already heavy with competition. He says they help companies understand what makes their company unique in that space so the business can carve out a niche and reposition themselves in the market.
Mark says the top reasons for a franchisor to get into franchising include the ability to grow faster and capitalize on money provided by the franchisee, as well as obtaining a highly motivated owner/operator.
Please listen to my conversation by clicking this link to hear Mark Siebert. Mark was my second guest in this episode. The conversation begins at 27.30 minutes into the recording.