Is Your Company Franchisable?
When determining whether your company can – or should – be franchised, the following criteria should be considered:
Your Company’s products and/or services should have wide appeal.
Your Company should offer products and/or services that have lasting demand.
Your Company should have a Unique Selling Proposition that sets it apart from other businesses of the same type.
Your Company and its products and procedures must be easy to duplicate. If an operation cannot be replicated with minimum expense and effort, it is probably not a good candidate for franchising. Likewise, the business must be easy enough to run that the average person can be taught to manage it within a relatively short training period. If the skills required are so specialized that this cannot be accomplished, there is no sense in considering it for franchising.
Your Company must have been in operation long enough to reliably project cash flow and profit margins for prospective new franchisees. You should also have the ability and resources to develop the procedures needed to run the new business.
Your Company must be geared up to make the fiscal and time commitment required to create a success franchising corporation.
Your Company’s franchise opportunity must be affordable — there is no point in creating an outstanding franchise opportunity if the prospect cannot come up with the required investment.
Because companies, products, conditions and opportunities vary, you should look at each of the above factors individually when considering your company. Even if your company does not meet all these criteria, it is possible that, by revising some aspects of your operation, you could realize the benefits of franchising.
