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When considering whether to franchise your business, one of many initial questions is, could a model of your enterprise be offered to individuals already in your business who’re searching for a greater system? It is a hard question to answer typically because every current business has a special set of circumstances, variables, personal traits and other parts that may drastically affect the way in which your franchise system will probably be owned and operated.

I have worked with a variety of franchise systems which have nice models for conversion franchising. The Weave Shop is an African American hair care business that has opened sixteen places over the course of the last 18 months. The concept is fresh, new and cutting edge. It is a good example of a business system that might work for an current salon in converting their business to a franchise. Also included could be the Restoration 1 franchise model – here, the franchise model principally consists of a advertising and marketing system used to generate leads for the restoration business. In some cases, existing restoration businesses make excellent candidates as Restoration 1 franchise partners. There are a lot of other examples of franchising models that also might fit into the conversion franchise model.

To begin, what is a conversion franchise opportunity? It is fairly simply when an existing, working business converts it’s working system and trade name to that of a franchise system. The brand, operating procedures and business model converts to what’s in compliance with the accepted franchise relationship. The benefits to this franchise model are that the operator should not need much training and assistance because they already get the business model. There also will probably be much less of a “ramp up” time because the business is already producing money flow in most cases. The downside to this model is that the operator is typically already “set in their ways” that means that it may be troublesome to change the best way they think and operate. It also may be troublesome to convince a conversion franchisee to pay an upfront price and “buy in” to a franchise system when they’re already working the business you might be selling to them.

In my experience, conversion franchises are usually not the standard franchise transaction. Over the past 2 years, I have been part of over a hundred and fifty totally different franchise transactions and just 2 of them could be thought of like conversion franchises. That doesn’t mean that it is not a legitimate franchise strategy, in spite of everything, Ace Hardware has used the concept of conversion franchises for years with great success. My recommendation, don’t plan on the conversion franchise, but additionally don’t rule it out as a possible partner opportunity. As they say in marriage although, “don’t plan on your partner to change just since you married them”.

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Tags: bussiness, money