Current market trends and the habit of consumers choosing familiar big brands over “mom and pop” shops have created challenges for small business owners competing in industries with well-known larger establishments. Conversion franchising has become an effective strategy for both franchisors and business owners. Conversion franchising is a current hot buzzword, but what does it mean? Here, we will discuss what conversion franchising is and how it can affect your small business.

Conversion Franchising

Conversion franchising is, simply put, when an existing company converts to a franchisor’s brand. An existing company becomes part of a larger corporation to reap the benefits of brand recognition and access to corporate structure and vendors. Conversion franchising can occur when a franchisor wants to penetrate a new area and decides that instead of competing with the local business, they join forces. Conversion franchising can also occur when a business owner seeks out a larger franchise and offers to convert their business to the franchised brand.

Converting Business Owner

If you are a current business owner who is considering converting your existing business into a franchise, consider the pros and cons.
The advantages of converting your business include marketing advantages by adopting a brand that has national recognition and a corporate marketing plan. Once your company belongs to a larger franchise, you can take advantage of lower supplier costs, which increases your purchasing power. You can also offer more products and services if a franchise offers the training and products necessary.
The downside to converting your established business to a franchise is you lose the freedom of making your own rules to a point. Although you remain the business owner and operations will be left to you, most franchises require standardization across the company. Another downside is the initial and ongoing fees. The fees cover the rebranding and use of logo and trademarks. If rebranding causes a significant increase in traffic, you may not notice the royalties.

Franchisor Acquiring a Business

If you are a successful franchise owner with a well-known brand and are using conversion franchising to absorb local competitors to grow your business, you should also be aware of the pros and cons.
The major benefit of converting local small businesses to your franchise is you inherit the expertise of the business owner as well as their established client base. It is also likely that they will have an existing location, some of the equipment required, and potentially trained staff. By including an existing business in your franchise, you expand your geographical reach while eliminating a competitor.

One of the major disadvantages of accepting an existing business owner as a convert to your franchise is that they are already established and set in their ways,


which sometimes makes it more difficult to adopt other business practices. This can compromise the standardized business model that is essential to successful franchise branding.

Converting to a Sign Me Up Business

If you already own a sign or printing company, consider converting to the Sign Me Up franchised brand. The benefit to you, as the business owner, is that since you already own the business, the equipment to run it, and have staff, the startup and franchise fees are much lower than an entrepreneur starting fresh. You also gain the established brand’s name, rights to logo and design. With Sign Me Up, you also gain access to all training, mentoring, reduced royalties, redesign of your shop, access to our vendors and suppliers, and reduction in competitors. The benefit Sign Me Up gains when you convert your existing business to a Sign Me Up franchise is your experience and loyal customer base.