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Franchising Readiness
Examine Your Business
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What if my business isn't ready to expand?
Examine Your Business
Sometimes a business has a great product or service but it's just not ready to expand. If you try to franchise before your business is ready, you risk crippling your operations and cash flow. These are the questions you need to be able to answer before committing to a lengthy and expensive franchising process:
- Is it possible for others to duplicate your success? If your success is wholly dependent on your own flair and skills, franchising is not going to work.
- What is your unique selling proposition? Why should people want to become franchisees of your business instead of starting their own? What is franchise-worthy about your process or service?
- Do you have a system that can be duplicated and monitored? Do you have an operations manual? You must provide proven guidelines for the operations, training, marketing, financial and legal aspects of the company.
- Do you have multiple locations now? Is your success dependent on local conditions or can you transplant to another location? Has your system been tested?
- Do you have experienced personnel? You need talented and able staff to recruit, train, communicate with and support franchisees.
- Do you have a protectable trademark? Licensed trademarks are the trade identity of the franchise network.
- Do you have the money you need to franchise? Developing a franchise structure is expensive and all costs are incurred before you receive any fees from new franchisees.
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