--- title: "Franchising: Is it For You?" description: One option to expand your operations is franchising. Franchising can be an excellent way to grow your business, but like all ventures, there are risks involved. image: https://blog.goosmannlaw.com/hubfs/Blog_Images/franchise.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - [Environmental, Health & Safety](https://goosmannlaw.com/health-safety/) - [Estate Planning](https://trustlawcounsel.com) - [Gestational Surrogacy & Adoption](https://goosmannlaw.com/gestational-surrogacy-adoption/) - [International Law](http://goosmannlaw.com/international-law/) - [Litigation / Trial Law](https://goosmannlaw.com/litigation-trial-law/) - [Local Counsel](https://http://goosmannlaw.com/local-counsel/) - [Mergers & Acquisitions](https://goosmannlaw.com/mergers-acquisitions/) - [Rapid Response](https://goosmannlaw.com/rapid-response/) - [Industries](https://goosmannlaw.com/industries/) - [Agribusiness & Cooperatives](https://goosmannlaw.com/agribusiness-cooperatives/) - [Construction](https://goosmannlaw.com/construction/) - [Cyber Law and Telecommunications](https://goosmannlaw.com/cyber-law/) - [Education](https://goosmannlaw.com/education/) - [Health Care](https://goosmannlaw.com/health-care/) - [Manufacturing](https://goosmannlaw.com/manufacturing-law/) - [Multifamily Housing](https://goosmannlaw.com/multifamily-housing-law/) - [Non-Profit & Tax Exempt Organizations](https://goosmannlaw.com/non-profit-law/) - [Real Estate](https://goosmannlaw.com/real-estate/) - [Transportation](https://goosmannlaw.com/transportation/) - [Tribal](https://goosmannlaw.com/tribal/) - Our Firm - [Firm News](https://blog.goosmannlaw.com/firm-news) - Careers - [Attorneys](https://goosmannlaw.com/careers/attorneys/) - [Administration](https://goosmannlaw.com/careers/administration/) - [Internships](https://goosmannlaw.com/careers/internships/) - [Client Testimonials and Results](https://goosmannlaw.com/our-firm/client-testimonials-and-results/) - [Culture, Diversity, and Community](https://http://goosmannlaw.com/our-firm/culture-diversity-and-community/) - [Women-Owned Business](https://goosmannlaw.com/our-firm/women-owned-business/) - [Associations & Memberships](https://goosmannlaw.com/associations-memberships/) - [Firm History](https://goosmannlaw.com/firm-history/) - Blogs - [CEO Law Review](https://blog.goosmannlaw.com/ceo-on-your-side) - [Construction Lawyer](https://blog.goosmannlaw.com/construction-lawyer-on-your-side) - [Cyber Lawyer](https://blog.goosmannlaw.com/cyber-lawyer-on-your-side) - [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side) - [Divorce Docket](https://blog.goosmannlaw.com/divorce-lawyer-on-your-side) - [Food for Thought](https://blog.goosmannlaw.com/agricultural-lawyer-on-your-side) - [HR Legal Insider](https://blog.goosmannlaw.com/human-resources-on-your-side) - [Law Doc](https://blog.goosmannlaw.com/health-lawyer-on-your-side) - [Paralegal Review](https://blog.goosmannlaw.com/paralegal-review/) - [Real Estate Lawyer](https://blog.goosmannlaw.com/real-estate-lawyer-on-your-side) - [Risky Business](https://blog.goosmannlaw.com/risk-manager-on-your-side) - [The Banker’s Suit](https://blog.goosmannlaw.com/banking-lawyer-on-you-side) - [Trial Law Review](https://blog.goosmannlaw.com/trial-lawyer-on-you-side) - [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side) - Resources - [COVID-19 Resource Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - [Podcast](http://podcast.goosmannlaw.com/) - [Videos](https://goosmannlaw.com/videos/) - [FREE eBooks & Tools](https://goosmannlaw.com/free-ebooks-tools/) - Contact Us - [Office Locations](https://goosmannlaw.com/locations/) - [Sioux City Law Firm](https://goosmannlaw.com/locations/sioux-city-law-firm/) - [Sioux Falls Law Firm](https://goosmannlaw.com/locations/sioux-falls-law-firm/) - [Omaha Law Firm](https://goosmannlaw.com/locations/omaha-law-firm/) - [Spirit Lake & Spencer Law Firms](https://goosmannlaw.com/locations/spirit-lake-and-spencer-law-firm/) - [Real Estate Closings Office](https://goosmannlaw.com/locations/real-estate-closing-office/) - [Submit a Testimonial](https://goosmannlaw.com/submit-a-testimonial/) - [Sign Up for Our Newsletter](https://goosmannlaw.com/sign-up-for-our-newsletter/) - [Pay Online](https://goosmannlaw.com/pay-online-3/) - [  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/deal-maker) # [Franchising: Is it For You?](https://blog.goosmannlaw.com/deal-maker-on-your-side/franchising-is-it-for-you) By [Goosmann Law Team](https://blog.goosmannlaw.com/deal-maker-on-your-side/author/goosmann-law-team)   |  5, August 2016 [READ NOW](https://blog.goosmannlaw.com/deal-maker-on-your-side/franchising-is-it-for-you) [Read Post](https://blog.goosmannlaw.com/deal-maker-on-your-side/franchising-is-it-for-you#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Logos/Logo1.jpg?width=60&name=Logo1.jpg)](https://blog.goosmannlaw.com/deal-maker-on-your-side/author/goosmann-law-team) [Goosmann Law Team](https://blog.goosmannlaw.com/deal-maker-on-your-side/author/goosmann-law-team)  Tags: [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/deal-maker) ![Franchising: Is it For You?](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/franchise.jpg?width=744&name=franchise.jpg "Franchising: Is it For You?") As a business owner, you are constantly looking to expand your operations. One option is franchising. It sure works for Dairy Queen and UPS, so why not for you? Like all business models, however, franchising has its cons. Before you give it the green light, it is important to understand how franchising would work in the context of your business. For instance, is your business model easily duplicable? Can your processes be scaled across markets? Are you able to train new franchisees on your model? **More Talent** It has long been proven that incentive-based programs work. Here, franchises win. Bosses are not salaried employees, instead they must focus on running a business in return for profits. This serves as a mini guarantee that hard-working, talented people are going to show up. There is accountability in franchising that ensures you are surrounded by people who can get the job done. **Brand Awareness** Franchising solidifies and expands a brand. A McDonald’s hamburger, a Dunkin’ Donuts coffee, a room at Super 8 Motel: the thing they all have in common is impeccable uniformity—across the nation, even across the world. Customers will know what to expect from you and will seek out the reliability of your brand. As a franchisor, one of your most valuable assets will become your brand. Take care to legally protect it before you franchise. **More Capital** As an entrepreneur, your buying power is limited. As a franchisor, your buying power can be as large as your franchise. Franchisors have the freedom to negotiate discounts and credits.  Beyond this, you will be able to access more expansion capital. Franchisees pay to buy outlets in your chain. You will be getting paid to grow your footprint. In addition, franchising means a diminished risk to expansion. **Lower Control** The popular television series *Undercover Boss*, which features CEOs going “undercover” to check in on managers and employees at branch locations, features franchises for a reason. Bosses lose control in franchising. While franchisors are in complete control of their contracts with franchisees, franchisees still have control over various aspects, such as company culture or some local marketing. There is a push and pull on business strategies between franchisors and franchisees on things like investing in infrastructure, methods to redeem coupons, making management changes, and levels of advertising. Franchisees have control over their employees; you do not. If they hire poor employees, it reflects on sales and your brand value. For this reason, many franchisors heavily vet franchisees and their owners’ business experience and net worth. In addition, outlining franchisees’ obligations is crucial. Advertising levels, production expectations, training and quality control should be addressed in your franchise agreement. Franchising can be an excellent way to grow your business, but like all ventures, there are risks involved. First evaluate if franchising aligns with your personal goals and values, then pragmatically look at your financial options and outlook. If you are considering franchising, speak with both a licensed attorney and a financial advisor and put in the leg work. For more articles and topics like this, continue to follow the Deal Maker on Your Side blog or click below to [contact](http://goosmannlaw.com/contact/?__hstc=233546881.9f9bb9b991170fe8b8b511f6eec43637.1428701253760.1428701253760.1428701253760.1&__hssc=233546881.1.1428701253760&__hsfp=3687188491) the [Goosmann Law Firm](http://goosmannlaw.com/?__hstc=233546881.9f9bb9b991170fe8b8b511f6eec43637.1428701253760.1428701253760.1428701253760.1&__hssc=233546881.1.1428701253760&__hsfp=3687188491) with any questions about franchising. [![CONTACT US](https://no-cache.hubspot.com/cta/default/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9) ### Select Different CTA for each Post from Blog Editor [![New Call-to-action](https://no-cache.hubspot.com/cta/default/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422) ### Subscribe Our Blog Thanks for submission!! - Recent - Popular ### Posts by Topic - [Deal Maker (28)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/deal-maker) - [Business Law (5)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-law) - [Mergers and Aquisitions (5)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/mergers-and-aquisitions) - [Business Divorce (4)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-divorce) - [Buy-Sell (3)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/buy-sell) - [COVID-19 (3)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/covid-19) - [Business Planning (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-planning) - [Estate Planning (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/estate-planning) - [Fertility (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/fertility) - [Letter of Intent (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/letter-of-intent) - [Operating Agreements (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/operating-agreements) - [Trust Planning (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/trust-planning) - [business owner (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-owner) - [business prenup, (2)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-prenup) - [Adoption & Assisted Reproduction Law (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/adoption-assisted-reproduction-law) - [Business Service Division (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-service-division) - [Buying a Business (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/buying-a-business) - [Construction Contracts (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/construction-contracts) - [Construction Law (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/construction-law) - [Corporate Law (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/corporate-law) - [Dead End (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/dead-end) - [Deal Gone Bad (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/deal-gone-bad) - [Family Business (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/family-business) - [Fixed Rates vs. Costs Plus (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/fixed-rates-vs-costs-plus) - [Franchise (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/franchise) - [Joint Venture (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/joint-venture) - [Landlord (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/landlord) - [Medical Practices (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/medical-practices) - [Professional Corporation (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/professional-corporation) - [Real Estate (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/real-estate) - [Separate Legal Entity (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/separate-legal-entity) - [Small Business Owner (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/small-business-owner) - [Tenant (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/tenant) - [WOSB (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/wosb) - [business partnership (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/business-partnership) - [commercial real estate (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/commercial-real-estate) - [exit strategy (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/exit-strategy) - [hiring (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/hiring) - [small business (1)](https://blog.goosmannlaw.com/deal-maker-on-your-side/topic/small-business) DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. #### Let Us Know What You Thought about this Post. Put your Comment Below. [Previous Post](https://blog.goosmannlaw.com/deal-maker-on-your-side/how-to-use-a-joint-venture-to-spur-growth) ##### [How to Use a Joint Venture to Spur Growth](https://blog.goosmannlaw.com/deal-maker-on-your-side/how-to-use-a-joint-venture-to-spur-growth) [Next Post](https://blog.goosmannlaw.com/deal-maker-on-your-side/avoiding-post-closing-surprises-after-an-acquisition) ##### [Avoiding Post-Closing Surprises after an Acquisition](https://blog.goosmannlaw.com/deal-maker-on-your-side/avoiding-post-closing-surprises-after-an-acquisition) ### Contact Info **Sioux City Location** P. 712-226-4000 F. (712) 224-4517 **Sioux Falls Location** P. (605) 371-2000 F. (605) 275-2039 **Omaha Location** P. (402) 280-7648 F. (402) 505-3967 --- [Disclaimer](http://goosmannlaw.com/list-all-blogs/disclaimer/) | [Privacy Policy](http://goosmannlaw.com/privacy-policy/) ### Locations **Sioux City Location** 410 5th Street Sioux City, IA 51101 **Sioux Falls Location** 5010 S. Minnesota Avenue, Suite 100 Sioux Falls, SD 57108 **Omaha Location** Advent Building 17838 Burke Street, Suite 250 Omaha, NE 68118 ![Goosmann](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/Lockbox%20Lawyer/goosmann-white.png?width=250&name=goosmann-white.png "Goosmann") Goosmann Law Firm is a FULL SERVICE LAW FIRM with locations in Sioux City, Iowa, Sioux Falls, South Dakota, and Omaha, Nebraska. Goosmann Law attorneys are licensed to practice in Iowa, Nebraska, South Dakota, and North Dakota. Their attorney team's practices and industries include but are not limited to Agribusiness and Cooperatives, Banking and Finance, Bankruptcy, Restructuring and Workouts, Business, Construction, Cyber Law and Telecommunications, Divorce and Family Law, Education, Employment, Environmental Health and Safety, Gestational Surrogacy and Adoption, Health Care, Litigation and Trial Law, Manufacturing, Mergers and Acquisitions, Municipal, Nonprofit and Tax Exempt Organizations, Real Estate, and Transportation, Tribal, Wills, Trusts, Estate Planning, and Probate Law. Goosmann © Copyright 2017