Is Your Business Franchisable?
While not every business is franchisable, many are. In addition, while most business owners can easily adapt to standard franchise requirements, some owners are not willing to change their management style. Since franchising an existing business can be highly lucrative, we have prepared the following questions to be considered by business owners considering whether to take the next step:
- Has your business been profitable for the last three years?
- Can your business achieve at least a 15% return on investment for a franchisee by the second or third year of operation?
- Do you have an operations manual or are you capable of creating one for use by franchisees?
- Can your business model be easily reproduced and can others be taught to run a franchise operation in less than six weeks?
- Do you have or can you create a comprehensive, easy to understand training program?
- Are you absolutely committed to establishing a long term, mutually profitable relationship with future franchisees?
- Have you identified your major competitors in all of the primary target market areas and are you confident that you are prepared to successfully compete with them?
- Do you have sufficient capital to develop a professional and competitive franchise system?
- Have you established a franchise recruitment plan and procedure?
- Have you ever had inquiries from people wanting to open a franchise for you or establish a partnership?