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!