Why Conversion Franchising Is a Great Choice for Small Business Owners Focused on Growth

The decision to convert your business to a franchise is a big one, but it comes with some serious benefits. With that in mind, how does converting a business to a franchise work?

For small business owners looking to expand their horizons and boost their income, choosing to convert your business to a franchise unit of a well-established brand could be a smart move. By aligning with a trusted name, you gain access to proven systems, robust support networks, and a recognizable brand that can attract more clients and build your reputation. This approach allows you to retain your autonomy while leveraging the resources and expertise of a larger organization, making it easier to grow and thrive in today’s hyper-competitive market. Whether you’re looking to streamline operations, tap into a target new market, or increase profitability, conversion franchising offers a promising future. 

What is a conversion franchise, and why would you convert your business to a franchise?

Also known as a franchise acquisition, conversion franchising is when an existing small business joins forces with an established franchise brand within that industry, transforming into a franchise unit under that larger organization. Instead of starting from scratch, you partner with a brand that’s already built a solid reputation, developed effective processes, and proven its ability to succeed in the marketplace—all while you still maintain ownership.  

Now, why do some small business owners pursue a conversion franchise? Imagine you own a staffing agency and are hitting some hurdles on your path to growth, just like Spherion franchise owner Greg Forrest was. “As my business expanded, expenses like payroll and insurance escalated rapidly,” said Greg, “and every business owner knows that payment for services rendered is not always a smooth process. That was creating cash flow struggles for my business that I wanted help ironing out.” After careful consideration, Greg reached out to Spherion. “I realized that a franchise model could alleviate these problems,” recalled Greg. By converting to a franchise, Greg gained access to a trusted name, sophisticated marketing strategies, and operational tools that gave him the help he had been looking for.

Franchise conversion also offers a chance to solve other small business pain points. For instance, if you’re a restaurant owner trying to streamline inventory or cut costs, joining a franchise that has established supplier relationships and bulk purchasing power can instantly boost efficiency and profitability. 

And beyond these practical perks, conversion franchising can provide a sense of community. Small business ownership can feel isolating, with few other “peers” to look to for support. But when you convert to a franchise, instead of navigating challenges on your own, you become part of a network of franchisees who share experiences and insights, helping you to grow while keeping your entrepreneurial drive alive.

What are the benefits of conversion franchising?

When you turn your small business into a franchise, you tap into a range of benefits that help your business thrive while reducing many of the headaches of running a company on your own, like:

A proven business model

Franchises have already done the hard work of figuring out what works—and what doesn’t. From operational processes to customer service strategies, you’re adopting a system that’s been fine-tuned for success. This saves you from constant trial and error, letting you focus on growing your business with confidence.  

A support network

Imagine having experts help you with marketing campaigns, the latest technology, regulatory compliance, financing, and even HR. Need help navigating complex payroll systems? Many franchises offer comprehensive payroll support, so you can focus on your team without worrying about the fine details. You’re not just buying into a brand; you’re gaining a partnership that makes every part of running a business easier.  

Less risk

Starting or scaling a business on your own is challenging, and mistakes can be costly. Franchises come with a blueprint for success, reducing your exposure to common pitfalls. This, combined with increased brand recognition, is a recipe for attracting loyal customers who trust the name you’ve partnered with. 

Ultimately, converting to a franchise gives you the tools and support to grow your business without sacrificing your sense of ownership. It’s a way to lighten your load, lower your risk, and grow further than you imagined, all with the backing of your franchisor. 

What are some things to keep in mind when you convert your business?

While the choice to convert your business to a franchise model comes with exciting opportunities, it also requires you to understand the practical side of the process. Knowing what to expect can help you decide if franchising is the right move for you and prepare for a smooth transition.

First, let’s talk about the typical convert to a franchise cost. When you join a franchise, there’s usually an upfront franchise fee to pay, as well as ongoing royalty fees. These fees might feel like a big adjustment at first, but remember that they go toward the resources and support that can help your business thrive. For example, you may be contributing to a marketing fund, technology fund, or similar programs, but those investments come back to you in the form of professional advertising campaigns, cutting-edge tools, and other perks that you’d otherwise have to fund on your own.

Another thing to keep in mind is that your current business model may need some tweaking for it to meet the franchisor’s established framework. This might mean adopting a new name, adjusting your service offerings, or shifting your pricing strategy to match the brand’s standards. While changes like these can feel a little uncomfortable, the reality is that you’re adopting practices that have already proven successful, which can ultimately help you grow more efficiently.

You’ll also need to prepare for new standard operating procedures (SOPs). Franchisors typically require franchisees to follow specific guidelines to ensure consistency across the brand. This might include everything from how you manage customer interactions to how you handle inventory or payroll. If you’re used to running things “your way,” this could take some adjustment, but these SOPs are there to streamline operations and create a better overall experience for both you and your customers.

Next steps if you’re thinking about conversion franchising

If you’re considering converting your small business into a franchise, congratulations! You’re already on the path to exploring a fresh and exciting way to grow. To make the most of this opportunity, a little planning and research can go a long way. Here are some practical steps to help you move forward.

1. Start by researching franchise business models that complement your current business. Look for a structure that makes sense for what you’ve already built, whether it’s in terms of services, operations, or target customers. The goal is to find a franchise model that enhances your strengths while offering tools to overcome any challenges you may face.
2. Explore different brands within your industry. Pay attention to the ones that share your values and business philosophy. For instance, if your community is a priority, find a brand that celebrates its franchisees being “local.” As part of this, you’ll want to look into how they operate, their reputation in the market, and the kind of support they offer franchisees.
3. Once you’ve narrowed down a few options, reach out to those companies and start a conversation about franchising. Franchisors are usually eager to talk to potential partners, and they’ll be happy to answer your questions about fees, processes, and support. 
4. Don’t stop there—connect with current franchisees, too. They can give you an honest perspective on what it’s like to work with the brand, what challenges to expect, and how the franchisor supports them day-to-day.

This process is as much about finding the right fit for your business as it is about ensuring the franchise aligns with your personal goals and vision. By taking the time to research, reach out, and learn from others, you’ll be setting the stage for a successful and rewarding transition into the world of franchising.

Ready to explore the next chapter for your business?

Choosing to convert your business to a franchise is a powerful way to grow, streamline operations, and unlock new opportunities—all while tapping into the support of an established brand. From leveraging a proven business model to accessing marketing, technology, and operational expertise, franchising can give you the tools you need to take your business further than you thought possible. 

If you’re a staffing business owner looking to take your company to the next level, Spherion might just be the perfect partner for your journey. With decades of experience and a network of successful franchisees, Spherion provides the support, resources, and brand recognition that can help your business soar. And for answers to all your questions, we invite you to connect with Dan Brunell, our Regional Vice President of Franchise Development. Whether you prefer to text, call, or email, Dan is here to chat! With over 30 years of experience helping future franchisees, he’s ready to share valuable insights as you consider joining our franchise family.