In this article, I will explore one factor that can lead to lucrative franchise development.
It is important to look at the profit potential for the Franchisee when considering the franchise development process of expanding your business. Ensuring the Franchisee will generate enough income can make all the different in your franchise development success.
Will The Franchise Generate Sufficient Money?
As you begin your franchise development, always remember there are thousands of existing franchise opportunities. You will find franchises in a broad variety of industries, serving diverse sets of customers.
They will require a variety of different abilities, generating vastly different revenues, involving an assortment of initial financial investments, and providing the Franchisees with a variety of emotional incentives.
You must consider each of these variables when performing your franchise development process.
Remember, Franchisees have different motives, goals and assets. Some franchises require an initial investment of $20,000 and others involve millions of dollars. With one franchise development, the Franchisees may average an annual income of $10,000 while at another, the business generates an average $500,000 profit annually.
Yet, the Franchisees for both franchises developments are happy, because they are meeting their individual goals.
There are many issues to review during the franchise development process that may impact the anticipated income for Franchisees.
Franchise Development Process Considerations
When working on franchise development, contemplate:
- The investment required to open the business
- The industry involved
- The funds needed to operate the business
- Anticipated gross revenues
- Expected profits
- Whether your franchise is unique
- How much time you anticipate the Franchisee will devote to the business
- The income provided by competing franchise developments
- The knowledge and abilities the Franchisee will need
- The income a person with this knowledge and abilities customarily receives
- If this franchise is intended to provide the primary household earnings or additional revenue
- If you anticipate your Franchisees’ having multiple locations
- The benefits other than financial furnished by your franchise.
In the franchise development process, do not ignore this final bullet point. Many businesses are highly desirable in spite of not generating a sizable annual income because they bring a high level of satisfaction.
Some examples are the free travel that professionals in the travel industry may enjoy or the opportunity to spend your day doing something you love, such as being in a pet-oriented business.
Also, when in the franchise development process stage, recognize the gratification of owning your own business.
Thinking About Developing a Franchise Support System?
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.