Fundamentals for Franchising a Business

Considerations for Franchising

There are very few cases in which franchising a business should be undertaken without a proven business model.  Regardless of how inspired an idea it is or how persuasive an argument can be made to franchise a hypothetical company that has not yet been tried, there is little chance of success in franchising a concept that does not have a proven operating system.  Why would someone invest his/her hard earned money in an untried franchise idea?

At National Franchise Associates, it must be an extremely compelling situation before we will recommend to business people to launch franchise operations directly from an untested concept.

Instead, the entrepreneur who wishes to succeed in franchising a business must first create a workable prototype with demonstrated demand and effective systems and procedures.  Remember, a key to successfully franchising a business is others must be able to duplicate the operations.

Franchising a Business Is Long Term

Never forget that franchising a business is not a quick and easy solution to a corporate cash flow crunch.  Rather, it is a long-term business growth strategy.

Next, when franchising a business, determine if the franchise operations will generate enough revenues to fund the Franchisor’s growth and maintain your Franchisee support programs.  In addition, you must ascertain that your Franchisees can make sufficient money to survive.  Another important aspect to success when franchising a business it to be careful to grant franchises to the right Franchisees – people who share your vision for the company, have the proper skill set to operate the business and possess the requisite resources.

Consider Your Customers

When franchising a business, you must understand that you are serving two sets of customers: (1) your Franchisees and (2) the end-line customers who purchase the Franchisees’ products or services.  When franchising a business, you must structure your franchise operations to enable you to meet the needs of both customer groups.  We have found that success in franchising a business comes to those companies which keep an unwavering focus on meeting the needs of both their Franchisees and their end-line customers.

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.