This is a valid question, and one that deserves a comprehensive answer. To assess the viability of franchising your existing business, you need to consider several critical success factors. We have condensed these critical factors into twelve questions that must be satisfactorily answered before franchising commences.
- Does the business operate in a large and growing market?
- Is the growth in the market sustainable?
- Are the margins sufficient to cover the proposed management services fees?
- Can the product demand a price premium?
- Does the franchisor have access to sufficient capital?
- Does the potential exist to establish a memorable brand?
- Is there a substantial barrier to entry - not easily copied?
- Will the development costs permit a satisfactory return on investment?
- Is it possible to grow a franchise culture in the company?
- Does the concept have staying power?
- Is it relatively easy to transfer the required skills?
- Are suitable systems and procedures in place?
To discuss the above success factors in detail and how to franchise your business successfully, contact Franchising Plus.