• Sam Christopher Lim - President

Consider Franchising if You Want to Grow Your Business While Managing Risk


Challenges are part of every entrepreneur’s journey and it is through these that their businesses grow stronger and become successful. While continuous growth is critical to a business, managing risk is also an important aspect to creating a sustainable enterprise.


Franchising, while not risk-free, allows you to build your business while conserving three of your most valuable resources: your capital, your time and your organization.


1. Spreading the risk in capital

Unlike opening company-owned outlets, you can grow the number of your stores through franchising without putting out your own money or borrowing from a bank as capital.


Each franchisee invests their own capital to buy an outlet in your chain and thus reduces the risk of financial loss from only one source. In fact, instead of spending capital for every store you open, you receive franchise fees, royalties and marketing fees that allow you to build a fund to reinvest into the business and support your franchisees. Through franchising, you can still meet your goal for brand growth by utilizing the capital from your franchisees and achieve a win-win formula at both ends.


2. Expansion of management bandwith

A sought-after characteristic when hiring managers for your business is having an owner mindset. Your managers will deliver the best results and save you from worrying all day especially during economically challenging times. They may be perfect for any type of business yet unfortunately, they are not easy to find.


Through franchising, you are assured that each franchisee is highly motivated and has a strong sense of ownership that would make them the best managers and partners as you grow your brand. As owner-managers, they are not only looking at the next pay check, but are more focused on the long term growth and sustainability of the business.


3. Decentralized staffing

Franchising your business will free up most of your operational responsibilities by having them delegated to your franchisees. This will allow you to f