Is it the Right Time to Franchise Your Business?

When a business owner wants to expand his business concept across a region or the country, franchising can be an attractive option. According to the International Trade Association’s 2016 Franchising Top Markets Report, franchising was projected to generate $944 billion in financial growth for the nation's economy, expanding more than 3 percent in 2016. The same report also expected the franchise business model to create an additional 278,000 jobs in 2016. With the potential for franchising to create greater value for business owners, is franchising right for your company?


  • Determining a Business’ Ability to be Franchised.

Before a business model can be franchised, it’s worth looking at different types of franchise models. One model is creating a standardized business system that can take the form of a hotel or motel, a restaurant/dining establishment or a graphic design/printing business. Other types of franchises include selling either pre-made products or manufacturing a product onsite (be it a food item or tangible marketing materials) under the corporate headquarters’ direction and brand or trademark. From these different models, business owners should look at the type of product or service they are selling and how their experience compares to the rest of the industry.   

When it comes to evaluating a business’ ability to be franchised, along with reviewing the profits and sales records, one important factor is the organization’s concept and how easy it can be replicated regionally or nationally. Franchises that have a greater chance of being successful give consumers something they are accustomed to in their daily lives. However, a franchise must also put a unique spin on a familiar product to help distinguish it and help it take off beyond its initial location.

Taking the food service industry for example, a quick-serve chain that sells hamburgers or pretzels that uses organic, sustainable raised ingredients and is served to customers via a conveyor belt is an example of delivering a familiar product through a unique approach. This is just one example – looking at how the product is differentiated from the rest of its competitors is what is important to scalability and consumer interest.

By highlighting that raw ingredients are grown 100 percent organically, consumers may be attracted to the brand’s product health and environmental commitments. Potential franchisees create value by producing a predictable and easily executable system for standardized employee training, both initially and for ongoing needs.


  • What Role is Desired by the Business Owner?

When business owners transition from owning a single location to becoming a franchisor, their role changes. Business owners often transition from repairing shop fixtures and selling their namesake product to becoming the No. 1 salesperson, explaining how the franchise works and how it can benefit franchisee owners. Other considerations for business owners include how open are they to outside partners, or having to secure debt financing for future expansion.

Some individual states have regulations for selling franchises and the Federal Trade Commission requires a Franchise Disclosure Document to be filed with the agency. This document includes a manual of operations for franchisees, information on the management team’s business background, audited financial statements, etc. Along with the regulatory requirements, franchisors also need to think about what fees and royalties franchisees must pay; the detail and length of training each franchisee receives; and what products or equipment the franchisee buys from you, the franchisor. 


Making the move from an established business owner to a franchisor is a complex process that may not be a good fit for every business. However, for the right type of business and those running it, becoming a franchisor can take a unique concept nationwide.






This information is general in nature and may be subject to change.  Financial professionals and other representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. .
Brokerage and Insurance Products: Are Not Deposits • Are Not FDIC-Insured • Are Not Insured By Any Federal Government Agency • Are Not Guaranteed By the Bank or Affiliates of the Bank • May Lose Value


Heather Castle

I am originally from Virginia and grew up in Tuscaloosa, Al.  I completed both of my degrees at the University of Alabama.  My undergrad degree in Finance and then later my MBA from the Manderson Business School through their Executive MBA program. 

I started Castle Wealth Advisors, LLC because I wanted to provide ethical and approachable financial planning and investment management to individuals and business owners, concerned with their financial futures, regardless of age, sex, race, or net worth.

I've always believed clients should work with reputable, qualified, and experienced advisors.  So it was important to me to gain industry experience as well as pursuing additional industry specific designations.  I have passed the following licensing exams:

     Series 7, General Securities Representative

     Series 66, Investment Advisor Representative 

     Series 9 & 10, General Securities Sales Supervisor

     California Life, Health, and Variable Insurance (License #0K01554)

I have been in the financial services industry since 2006 and have work with many differing type of clients over the years.  One thing I know to be true, everyone wants to feel heard and cared about.  Meaning everyone I have ever worked with wants to feel like their desires, wants and needs have been heard and taken into consideration when speaking about their personal financial matters.

Many people have the same goals, they just express them differently, and then there are a few who’s view and desires are completely different.  This is one of the aspects I love about my job.  The PEOPLE!  I get to meet some many interesting people and they challenge me daily.  No day in my line of work is the same.  Today I could be planning for a family who owns a small business and tomorrow working with a women going through a painful divorce.  Listening and building financial plans and strategies around personal needs is why many of my clients have said they do business with me and have stayed with me. 

Another reason I love my job… I get to truly HELP people.  I get to make a living and provide for my family while helping others.  Over my career I have felt a need to dive deeper into financial planning and working with high net worth individuals who have greater planning and investing needs.  Listed below I have highlighted a few of the areas I specialize in:

·      Women in transition (divorce/ death)

·      Corporate Executives

·      Young Entrepreneurs

·      Small Business Owners

·      Family with Special Needs Members

·      Complex Retirement and Estate Planning Needs

Currently I live in Brentwood and really enjoy the West Side of Los Angeles.  I am actively involved with the Junior League of Los Angeles.  I have a passion for trying new things and new experiences.  So, in my free time I love traveling and scuba diving.  I also am interested in learning French, taking pilot’s lessons and dancing the tango!