As a franchise consultant, a question I commonly hear is “What are some issues that should be considered when you franchise your business?”
One of the most important issues when you franchise your business is selecting the right Franchisees. If your first few Franchisees are not happy when you franchise your business, it is virtually impossible to sell more franchises.
The first area of properly qualifying Franchisees when you franchise your business is financial:
- Do your prospective Franchisees currently have, or can they get enough money to open and to have sufficient working capital to launch and operate the business?
- When you franchise your business, can your Franchisees support themselves and their families until the franchise achieves profitability?
- Over the long term, when you franchise your business, can your Franchisees cover their personal expenses on what they can reasonably expect to pull out of the franchise location?
- Is the person credit worthy, so he or she can obtain additional funds if needed?
When you franchise your business, the next area on which to concentrate to ensure you sell franchises only to those people most likely to succeed as Franchisees is the candidate’s personal background and character:
- Work experience
- Personality (The person may be experienced and qualified, but if he or she dislikes working with customers, and your franchise model requires the Franchisee to be the public face of the business, it will not work.)
- Litigation background (Do you want to grant a franchise to a person who is untrustworthy or likely to take you to court?)
- Driving record (Has the candidate’s driver’s license been revoked due to frequent DUI’s? If so, do you want a person with a drug or alcohol problem running your franchise?)
- Vision/ethics (Does the prospective Franchisee share the Franchisor’s philosophy, dream and integrity?)
- A team player (One of the cornerstones of franchising is that all Franchisees must support the system. Franchisees can’t be mavericks).
- A mature and stable personal life (A well-grounded person is more likely to be a successful Franchisee.)
- Focus (Can and will the person concentrate on making the franchise successful?)
It can be a nightmare for the Franchisor to deal with a poorly equipped or underqualified Franchisee. Therefore, you must be selective in awarding franchises and not sell a franchise simply to get a check when you franchise your business.
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.