Best Practices in Franchising a Business

David Kiger serves as chief executive officer of Worldwide Express Operations, LLC, a Dallas-based company he established nearly 20 years ago. WWE started as a struggling organization hoping to succeed in the niche market of supplying freight and small parcel shipping to smaller businesses. The company, now operating some 150 franchise offices, has developed into a leading resale partner to UPS and the shipper of more than 10 million items annually.

imagesDavid Kiger began the franchising of his new company almost from the beginning. He currently uses his understanding of optimal operating procedures and business practices to advise emerging entrepreneurs through his website, DavidKiger.com. There, he offers tips on franchises and other topics for aspiring businesspeople across the country.

The U.S. Census Bureau first began collecting data on franchise businesses for the 2010 census. In 2007, franchises comprised more than 10 percent of all businesses across nearly 300 categories. Franchise operations accounted for well over $1 trillion in revenue gains, as well as payroll totals of more than $150 billion for close to 8 million employees. While expanding as a franchise can produce quick financial success, it is vital for each business owner to assess his or her company’s individual situation to determine whether this is the right next step.

A business owner must first understand his or her company in every detail. New franchisees will need to be given complete outlines of all policies and procedures as well as accounting practices and other standards. In addition, it pays to have an articulated vision for the rate and pattern of growth that is best for a business’ long-term interests. Entrepreneurs should also make sure to perform due diligence in screening all potential franchisees, both financially and in terms of management skill and temperament.

When considering whether or how to expand into a franchise, consult qualified legal counsel and experts in the procedure. Groups such as the International Franchise Association can offer valuable perspectives and advice.

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