Franchise Lawyer Blog

Can You Franchise Your Business?

When we first started this blog, one of our initial inquiries, in September 2008, concerned what a businessperson needs to know to evaluate whether or not their business can be franchised; our website discusses that question in detail. But this is a question that bear continued assessment.

Many successful businesses that have developed strong brands and are experiencing a significant demand for their services or products might consider franchising. Franchising is a way to expand by granting others-franchisees-licenses to operate a franchise using your business concept and trade name.

In order for franchising to be successful, you need to not only have a solid and in-demand business operation in place, but you also must be able to teach others to duplicate that operation. The New York Daily News recently profiled a New York City-based company that says business is booming and has recently decided to enter the world of franchising.

The company is The Junkluggers, which was opened by a young college student in 2004. The Manhattan resident was inspired to get into the junk hauling business after learning that his friend was paid handsomely to haul away a refrigerator, according to the news report.

The business started out very small, with the now 30-year-old posting fliers to advertise his services-he’d haul away your unwanted items, using his mom’s SUV, for a fee.

After a lot of hard work and strategizing, the business ultimately grew to what it is today-a 14-truck and 50-employee operation that netted $2.4 million in revenue last year.

The next big step for the company is franchising and it recently signed deals in New Jersey and Connecticut, as well as New York, in this regard.

When a business is considering franchising, it is important that the business owner reviews a few questions:

  1. Does the business have a strong brand and a proven concept?
  2. Can you teach others to replicate your success?
  3. Does your business have appeal in certain regions? Where?
  4. Is there enough room in the market for franchising?

Once these issues, among others, have been thoroughly evaluated, it may be wise to begin working with a franchise law attorney in order to develop your franchise business system.

Source: New York Daily News, “NYC-based franchise The Junkluggers aims to turn trash into small-biz treasure,” Elizabeth Lazarowitz, April 9, 2013

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