Meet Hossein Kasmai, the founder of Franchise Creator, a company that helps businesses partner up with hundreds of stores that sell their products and services all over the country. Hossein himself has learned franchising the hard way – by expanding his own business to over 170 franchises in 11 countries. Today, Hossein shared a ton of exclusive advice on how to franchise your business and whether you should consider it at all. Tune in and learn everything about it!
What Is Franchising and Why It Is a Good Option?
If you’re running a physical, location-based business, there are two general ways that you can grow in: either you build new departments from scratch or you franchise.
Franchising is the type of business arrangement when you sell your goods through affiliated stores. The partnered businesses get to sell your products using your trademark and other intellectual property, and you get a share of the sales.
For Hossein, the decision to franchise his children safety equipment company came out of a need for perfection:
“Here’s the problem. As a business owner, you want the best for your business. So as you grow from one location to second, to third, to fourth – you always worry that […] the general manager or a manager who’s going to be running that second or third location doesn’t really have the same care.”
The entrepreneur also pointed out that the quality of service in his business’s branches was extremely important to him since the products were meant to be used by children and their parents.
“They’re not going to have the same detail-oriented ideas of running a business, they don’t really have invested interest in running that location and so, they’re not gonna run it the way you do,” Hossein Kasmai said, “And that was my worry, […] especially in this particular business where we’re dealing with children. You know, How would I insure that someone under my brand is handling children across the country in the way that they should?”
“Franchising is the only solution that solves that problem,” he added.
Can All Businesses Franchise?
Even though franchising definitely sounds like an appealing option for many, not all businesses will be able to easily branch out to tens and hundreds of franchises easily, if at all.
One of the key things for successful franchising is your business’s reputation.
“Number one – it has to be a business that’s accepted and liked. If you have a 1-star rating on Yelp […] with a thousand reviews, there’s something wrong with the product or the service you’re providing,” Hossein shared.
Other factors that decide whether a business is franchisable include how long the business has operated for, the product/service being offered, whether these products/services are in demand and other criteria.
If you wanna learn everything else there is about franchising your business, tune into our podcast at the top of the page!