In my over three decades of experience working in franchise development, I am often asked “What makes one Franchisor succeed in franchise development while another doesn’t?” Rarely is there a single reason for success or failure in franchise development. Here, I will examine one of the many factors that can help Franchisors create a winning program in the franchise development process.

Business owners who are considering franchise development as the chosen method to expand their businesses should ask themselves how much money can my Franchisees make. There is no one right answer to this question. However, it is critical during your franchise development process to determine the correct answer for your particular program.

When putting together your franchise development program, recognize there is an extensive array of franchise opportunities available on the market.

Franchises come in any number of industries, serve different types of customers, require diverse skills and temperaments, involve varied investments of time and funds, and generate unique amounts of profits and emotional satisfaction. As you formulate your franchise development plan, evaluate each of these areas.

For example, one franchise may generate an average income of $25,000 for its Franchisees while another might result in $250,000. Yet both sets of Franchisees are fulfilled. In the franchise development arena, no one answer is right for all prospective Franchisees.

When working on franchise development, you must determine whether the likely income the Franchisee will earn will make it an attractive offering. During the franchise development process, consider:

  • The anticipated gross revenues and profits for the Franchisees
  • The likely initial and recurring investment
  • How much time the Franchisee must devote to the business
  • The emotional benefits of owning your franchise
  • The franchise’s industry and the typical salaries in it
  • The abilities and experience you are seeking in your Franchisees
  • Whether your Franchisees will be the main breadwinner or providing supplemental income for the household
  • How exceptional your franchise opportunity is in the marketplace
  • If there are any competing franchises, the typical income of their Franchisees
  • If you will allow or encourage your Franchisees to be multi-unit owners

Thinking About Franchising?

NFA Franchise Consultants have the experience to help businesses franchise.  Just watch and listen to some of our client case studies and video testimonials.  We can HELP YOU and it doesn’t cost anything to call and talk to us! 

So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form.  We look forward to helping you take your business to the next level and beyond.