Imagine that you own a uniquely appealing local food service concept that routinely has lines out the door. The first unit was so successful that you opened a second across town, which is doing equally well.

The question then becomes, how can that concept further grow? Do you take all the risk — max out credit cards and/or knock on bankers' doors in an attempt to raise capital for expansion? Do you take on partners and dilute ownership stake and decision-making power? Or do you investigate franchising?

If your business has strong unit economics and a system that's easily duplicated (but not so simple that people can do it without your help), that last move may be the right one. And, of course, it's a model that has the potential to work in any number of industries, not just food. Dermatologists and dentists are franchising offices, along with pet-centric services, eye-lash extension boutiques and music lesson venues. The franchise sector actually outpaces growth in the broader economy, according to the International Franchise Association's 2024 Franchising Economic Outlook.

Related: Franchise Your Business in 7 Steps

There are numerous advantages to expanding in this way, two key ones being speed of growth and protecting your own cash by using other people's money (franchisees') to open units. Although you will need to invest time and money in developing the legal contracts and other documents for a franchise offer,........

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