When I speak with a business owner about the advisability of utilizing a franchise strategy to grow his or her concept, one of the first areas I address as a franchise consultant is what factors make a business a good candidate for a franchise strategy.

Franchise Strategy Focus

There are a number of questions to ask when you are considering the “franchise-ability” of your company:

  • Can a franchise strategy be used to replicate my concept?
  • Can my franchisees be trained in a reasonable amount?
  • What levels of competition exist in my industry? Is there ample room for growth?
  • Can the franchisee anticipate generating enough money during the first years of operations to justify the investment?
  • Does my business have sufficient operating history to validate the likelihood of success of my franchise strategy?
  • How large must the franchise territories be?
  • Will my franchisees be able to find promising, cost-effective locations?
  • Are the demographics of a market or territory a consideration?
  • How can I structure my franchise strategy to provide my franchisees advantages over competing franchise programs?
  • Does my franchise strategy require my franchisees to have any special licenses or credentials?
  • Is it extremely difficult to open and/or operate a location of my business?
  • Does my business have sufficient vendors available to withstand a problem with one (or more) of them?
  • Is my franchise strategy based upon a concept or technology that is likely to become obsolete quickly?
  • What gross revenues can I anticipate making from each franchise location?
  • Can I develop a franchise strategy that allows me to sell goods and/or services to my franchisees, making it even more lucrative?
  • What types of franchisee support must I incorporate into my franchise strategy?
  • Will I need to add any personnel to help me launch my franchise strategy?

These are some of the questions to be addressed when deciding if a business is franchise-able.

If you would like to speak with one of our franchise consultants today, please don’t hesitate to call (706) 356-5637!