When you start thinking about putting your Ontario business up as a franchise in the business for sale Ontario listings you should first consider if this is the best decision to make. You should assess whether there are other options that will be more beneficial to you than a franchise. In order to figure out what the best option is for you, you will need to learn more about them. Here are a few other choices that can offer more benefits than a franchise:
One method that has started to become prevalent is the cooperative organization model. With this method, the involved companies in the partnership come together to make the decisions as to the running of the business. This allows everyone to be able to benefit from the partnership instead of being under control of the franchise owners. Therefore everyone gets to contribute actively to the business’ wellbeing. This approach might benefit you as you will not need to outline strict specifications for new franchise businesses.
Licensing happens when you expand your business without labeling the new business with your name. In that way you are connected to the new entity but this is not necessarily known by everyone. This strategy is typically done in order to avoid certain strict regulations and taxes that are included in the franchising process.
Though you might be avoiding these taxes, this option is sometimes less beneficial to the new business. Since the business is a branch of yours you want it to be successful. However, coming into the Ontario business sphere with its own identity will mean that the company is technically starting from scratch. This will mean that there will need to be separate advertising efforts, whereas in the case of a franchise the benefits of advertising would be applied to all the businesses within the deal.
Furthermore, by law, you will not have any control over the actions of the new business since they do not have your name. Therefore they can engage in detrimental business practices that might end up causing the entity to suffer.
One other downfall that comes with the licensing option is the fact that you typically end up with the new business being a competitor than a partner as it would be in a franchise. Because you do not share the same name, you are considered in the public to be different entities. Therefore when customers are supporting each of the businesses they will be comparing them instead of considering them to be one in the same. When customers compare businesses they focus on the differences that set one apart from the other. However with a franchise they will consider the similarities that make the businesses one.
You can also consider working with Ontario distributors to push your product and offer them to a larger market. Distributors will push your brand and expose it to more customers. They do this without having to have everything being controlled on your end. Therefore you won’t need to offer too much support as they can work on their own. They also have important connections that will see increased sales and great deals for your business.