In my over three decades experience as a franchise consultant, I am often asked “When you franchise your business, what are some of the most important considerations?”
Here, I will examine one of those issues: when considering whether to franchise your business, you must first determine if it is “franchiseable”.
As a franchise consultant, if I am asked by a company to help it explore the viability of franchising as a growth strategy, we must first address if the company is a good candidate for franchising.
If you want to franchise your business, consider some or all of the following questions:
- Is the cost of opening the business justified by the amount of money the franchisee can generate over the first few years of operations? Or, another way of looking at the question – if you franchise your business, how long will it take your franchisees to earn back their initial investments?
- Can this business concept be duplicated?
- If you franchise your business, can you train your franchisees to operate the business in a commercially viable amount of time?
- Is there a prohibitive amount of direct competition for my concept?
- If you franchise your business, have you been in existence long enough to show that your concept is viable?
- What other markets can support my franchise concept?
- Does your franchise concept require franchisees to have special training, licenses or advanced degrees?
- If there is substantial competition in the marketplace, if you franchise your business, can you incorporate operational advantages that will allow you to sell franchises and your franchisees to thrive?
- Will your franchisees be able to find workable sites?
- If you franchise your business, does your industry have sufficient growth potential?
- Will your franchisees find it too challenging to open a franchise location of your concept?
- What is the anticipated life expectancy of one of your locations?
- If you franchise your business, can you accommodate training your new franchisees at the outset or do you have sufficient experienced personnel available to help you in this area?
- Do you anticipate being able over time to add new products or services to your franchise concept in order to make it more lucrative for your franchisees?
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.