Ways To Expand Your Business Without Franchising
Are you looking to grow and expand your business? Many businesses famously grow into franchise-based companies. However, many business owners don’t want all of the hassles, which come with on boarding franchisees. Here are some simple ways in which you can grow your business without franchising. Consider enlisting the help of a St. Petersburg Business Attorney since expanding your business can be a very challenging ordeal.
1. Expanding Your Operations Yourself
This is when your company has 100% control over your expansion. Wal-Mart owns 100% of its stores around the world. The downside of this approach is that you’re exposed to plenty of risks from lawsuits and other liability-related issues. This can also be very costly, because you have to pay for everything from real estate to equipment.
2. Licensing/Biz Opps
Another way that you can expand is through licensing your brand. This is a lot less risky and expensive than franchising, but there are additional challenges through this type of arrangement. You also have very little control over how your licensee uses your brand. A BizLaw lawyer is there to help you structure a licensing agreement if you would like to avoid some of the legal headaches, which comes with doing this.
3. Licensing Your Trademark
You can also allow people to use your trademarked intellectual property for a fee, such as your brand name. The Federal Trade Commission also mandates that you are not allowed to provide training, site selection assistance, or operations manuals. Thus, the downfall of this model is that you can be labeled an illegal franchisor. A business lawyer St. Petersburg is the best person to consult to ensure that you’re complying with all relevant regulations if you choose to license.
4. Distributing Your Product As A Wholesaler
You can also operate as a wholesaler, which sells products to a third party. The legal requirement is also that you don’t sell anything other than what can be resold to the third party. The big downside with this model is that your margins are cut short by the inability to profit from your brand.
Another method for expansion of your brand is through the agency model. These “agents” act as independent sales reps for your brand, which you compensate for generating sales for your business. The challenge with this model is that you’re at a huge disadvantage because there’s often very high turnover of these agents, along with challenges that come from support and training.
6. Partnerships/Joint Ventures
Partnerships allow you to partner with someone whom provides capital and work. This is in exchange for an agreed-upon share of revenue and profits. This also requires that each partner acts in an honest and ethical way. Challenges can come with disputes over compensation and split, and a partner might also abandon your business. If you choose this path, a St. Petersburg Franchise Attorney can assist in structuring the partnership.