ARE YOU READY TO FRANCHISE?
These are the qualities your business should have.
A basic checklist that helps you analyze your business.
Credible. Does your company have experienced management? Does it have a track
record over time? Is your business concept proven? Have you achieved good local
press or public acclaim?
Unique. There should be an apparent distinction between your business and
your competitors, in terms of products and services, marketing, cost, or target
market. Is it marketable as a business opportunity? Does it have a sustainable competitive
advantage?
Streamlined operations. Your system and business model should be easy enough
to be learned in a short time frame (3 months or less). Are the systems in place?
Are operating procedures documented?
Adaptable and in demand. Your concept should adapt to many locations and there
should be a demand for your products/services.
ROI. A franchised business should have enough profit after paying fees and
royalties to earn an adequate return on investment. It’s not just about profitability—if
a business can't generate a 15 to 20% return on investment after deducting a royalty
(typically 4 - 8%) you’re going to have difficulty keeping franchisees happy.
Strong management. The most successful company will fail without a strong
management team in place.