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7 Signs Your Small Business is Ready to Expand With Franchising

Thinking about expanding your business through franchising? It’s a strategic move, but not without its challenges.

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Image Credit: Midjourney

Are you thinking about franchising to expand your business? If you are ready for more success, opening up multiple locations is an option for scaling up. It boosts the reach of your brand, market share, and profits.

But franchising isn’t easy. When I franchised my business as a home-based service concept, I learned what it takes to be a successful franchisor. Though I researched and prepared extensively, the realities of managing a franchise system were full of surprises.

Based on my experiences, here are 7 ways to know if your small business is ready to expand with franchising.

1. Solid financials and metrics

You’ve been successful in selling your products or services. As a franchisor, get ready to sell the potential of your business as an investment. Take a look at your financial statements and metrics from the point of view of an outsider. What are your profit margins? Do you have seasonal fluctuations? Do they jump up and down from year to year?

Also, how much money are you drawing out as personal income? Showing that your business has been consistently profitable and can generate a decent salary makes your company an appealing opportunity for franchisees

2. There is market potential

Is there wide demand for what your company does? Consider the potential for franchising the success of your business across your region, the country, and around the world. If you offer a niche service that depends on certain market conditions, that limits your ability to expand. Or if you are in a sector which is trending down or in decline, then there is no market potential for franchisees. 

3. You have a trademarked brand

Franchising is all about recognition, which requires the duplication of a name and logo. If your branding has been trademarked, then you have a protected asset you can licence in a franchise agreement. If you haven’t, then it’s time to research. Beware of any similarities between your name and logo with large, established companies. Solid businesses have been ruined by costly legal fights with litigious corporations who issued cease and desist orders to protect their brand.

“Franchising is like building a business with training wheels; you get to learn from others’ mistakes and successes.” – Robert Kiyosaki

4. Your business runs without you

Does your team handle all the day to day operations? If you are still involved in hiring and training staff, managing suppliers, or taking care of customers, then your business is not ready to franchise. There are a couple of reasons for this. First, if you haven’t yet taught staff how to run all the ins and outs of your business, how will you teach franchisees?

And also, franchising is a big commitment, requiring a range of skills. There is marketing, lead gen, evaluation, training, and support. If you are still responsible for every day activities, there is no room or scope for managing franchisees. 

5. You have a manual

Every business has systems, policies, and procedures. But only a business which has fully documented them into a manual is ready to expand with franchising. New franchisees must have access to a manual. It’s their guide on what to do in any given situation. Every single task, activity, and behaviour must be set out in detail. This isn’t just for them to know what to do; it’s also your way to ensure that your brand and concept is being run exactly like you want.

The whole concept of franchising is about duplication and consistency. We walk into any chain store or restaurant because we know what to expect. This is controlled by the manual, which franchisees agree to follow as part of the legal agreement of joining your system. 

If you are thinking about franchising, start documenting every aspect of running your business. Don’t assume that someone will handle things the way you would. Remember that as a new system, franchisees don’t know your brand, your business, and how things are done. 

6. You have lots of cash. And can get more.

What they say about home renovations is true for franchising. It will cost more, and take more time than you think it will. Depending on your business sector, franchise fee, and royalty structure, it may not be until you have 6-8 franchisees up and running before generating the income to support the cost of running a franchise system.

In the meantime, you’ll need cash, and be able to access lots more to cover the costs of legal fees, marketing, training, and support. 

Review your financials with your accountant to measure how much operating cash flow you have available to invest into franchising. And talk to your bank about a loan or line of credit. 

7. You are comfortable being hands off

Do you have a hard time delegating? If you have a struggle with letting go of control, then you are not ready for franchising. As franchisor, you set the direction of the brand, and make strategic decisions. But your franchisees invested in your concept so they could run a business, and they expect you to be hands off.

Which means if they want to hire their brother in law whom you immediately dislike, too bad. As long as the manual is being followed, you don’t have a say in hiring decisions. 

To conclude, franchising is a well-established method for business expansion. After all, there are almost 800,000 franchises operating in the United States alone. However, it takes more than business success for an entrepreneur to become a franchisor. Strong financials, documentation, capital, a skilled management team, and the right mindset are necessary.

Rebecca Page-Chapman, MBA is an online entrepreneur coach and consultant. She is an award-winning entrepreneur with 20 years experience, including building a successful 7-figure B2C service business franchised to 3 cities. After Covid lockdowns closed her company, she earned her MBA from a top university in the UK. She loves supporting entrepreneurs to be more profitable and productive. Her holistic approach involves connecting small action items to big-picture strategy, in alignment with the lifestyle goals of each business owner. Rebecca writes about entrepreneurship at The Hagstone Blog and works online with business owners around the world.

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Entrepreneurs

The Leadership Shift Every Company Needs in 2025

Struggling to keep your team engaged? Here’s how leaders can turn frustrated employees into loyal advocates.

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Bridging the gap between employees and employers
Image Credit: Midjourney

In workplaces around the world, there’s a growing gap between employers and employees and between superiors and their teams. It’s a common refrain: “People don’t leave companies, they leave bad bosses.”

While there are, of course, cases where management could do better, this isn’t just a “bad boss” problem. The relationship between leaders and employees is complex. Instead of assigning blame, we should explore practical solutions to build stronger, healthier workplaces where everyone thrives.

Why This Gap Exists

Every workplace needs someone to guide, supervise, and provide feedback. That’s essential for productivity and performance. But because there are usually far more employees than managers, dissatisfaction, fair or not, spreads quickly.

What if, instead of focusing on blame, we focused on building trust, empathy, and communication? This is where modern leadership and human-centered management can make a difference.

Tools and Techniques to Bridge the Gap

Here are proven strategies leaders and employees can use to foster stronger relationships and create a workplace where people actually want to stay.

1. Practice Mutual Empathy

Both managers and employees need to recognize they are ultimately on the same team. Leaders have to balance people and performance, and often face intense pressure to hit targets. Employees who understand this reality are more likely to cooperate and problem-solve collaboratively.

2. Maintain Professional Boundaries

Superiors should separate personal issues from professional decision-making. Consistency, fairness, and integrity build trust, and trust is the foundation of a motivated team.

3. Follow the Golden Rule

Treat people how you would like to be treated. This simple principle encourages compassion and respect, two qualities every effective leader must demonstrate.

4. Avoid Micromanagement

Micromanaging stifles creativity and damages morale. Great leaders see themselves as partners, not just bosses, and treat their teams as collaborators working toward a shared goal.

5. Empower Employees to Grow

Empowerment means giving employees responsibility that matches their capacity, and then trusting them to deliver. Encourage them to take calculated risks, learn from mistakes, and problem-solve independently. If something goes wrong, turn it into a learning opportunity, not a reprimand.

6. Communicate in All Directions

Communication shouldn’t just be top-down. Invite feedback, create open channels for suggestions, and genuinely listen to what your people have to say. Healthy upward communication closes gaps before they become conflicts.

7. Overcome Insecurities

Many leaders secretly fear being outshone by younger, more tech-savvy employees. Instead of resisting, embrace the chance to learn from them. Humility earns respect and helps the team innovate faster.

8. Invest in Coaching and Mentorship

True leaders grow other leaders. Provide mentorship, career guidance, and stretch opportunities so employees can develop new skills. Leadership is learned through experience, but guided experience is even more powerful.

9. Eliminate Favoritism

Avoid cliques and office politics. Decisions should be based on facts and fairness, not gossip. Objective, transparent decision-making builds credibility.

10. Recognize Efforts Promptly

Recognition often matters more than rewards. Publicly appreciate employees’ contributions and do so consistently and fairly. A timely “thank you” can be more motivating than a quarterly bonus.

11. Conduct Thoughtful Exit Interviews

When employees leave, treat it as an opportunity to learn. Keep interviews confidential and use the insights to improve management practices and culture.

12. Provide Leadership Development

Train managers to lead, not just supervise. Leadership development programs help shift mindsets from “command and control” to “coach and empower.” This transformation has a direct impact on morale and retention.

13. Adopt Soft Leadership Principles

Today’s workforce, largely millennials and Gen Z, value collaboration over hierarchy. Soft leadership focuses on partnership, mutual respect, and shared purpose, rather than rigid top-down control.

The Bigger Picture: HR’s Role

Mercer’s global research highlights five key priorities for organizations:

  • Build diverse talent pipelines

  • Embrace flexible work models

  • Design compelling career paths

  • Simplify HR processes

  • Redefine the value HR brings

The challenge? Employers and employees often view these priorities differently. Bridging that perception gap is just as important as bridging the relational gap between leaders and staff.

Treat Employees Like Associates, Not Just Staff

When you treat employees like partners, they bring their best selves to work. HR leaders must develop strategies to keep talent engaged, empowered, and prepared for the future.

Organizational success starts with people, always. Build the relationship with your team first, and the results will follow.

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Entrepreneurs

What Makes an Entrepreneurial Leader? Traits of the World’s Best Innovators

Inside the mindset of entrepreneurial leaders who transform risk, passion, and vision into world-changing results.

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entrepreneurial leadership skills and traits
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When you think of Richard Branson (Virgin Group), Bill Gates (Microsoft), Steve Jobs (Apple), Rupert Murdoch (News Corporation), and Ted Turner (CNN), one thing becomes clear: they are not just entrepreneurs, they are entrepreneurial leaders. (more…)

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Entrepreneurs

Building a Business Empire: Lessons from the World’s Boldest Entrepreneurs

Learn essential lessons, success strategies, and mindset shifts every aspiring entrepreneur needs to overcome challenges and build a thriving business.

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how to build a business empire
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Back in July 2017, I attended a business seminar on entrepreneurship in India. With my appetite for learning and meeting new people, I wanted to explore the latest developments in the entrepreneurial world. (more…)

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Change Your Mindset

Why Ideas Are More Valuable Than Resources for Entrepreneurial Success

Discover why ideas, not resources, are the true driving force behind entrepreneurial success, innovation, and lasting growth.

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Power of ideas in entrepreneurship
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History shows us that the greatest minds, Albert Einstein, Thomas Edison, Oprah Winfrey, Michael Jordan, Walt Disney, Stephen King, and countless others, faced failure early on. Yet, instead of seeing failure as the end, they treated it as a comma in their story, not a full stop. (more…)

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