Is Your Business Able To Be Franchised? How do you Know?
One of the questions we are frequently asked by business owners is, “Can I franchise my business?” Owners who want to grow their businesses often see franchising as a capital and time-effective way to expand their operations. Is your business right for franchising?
Can I franchise my business? – 4 questions to ask.
Question 1 Has someone ever asked you, “Is this business a franchise?”
This seems like a strange question to ask, but this is a great indicator that you should at least consider looking into franchising your business. When people are inquiring about whether your business is a franchise, it is often because they are interested in owning and/or investing themselves. If you have been asked this question more than once, you know that there is some interest in franchising your business.
Question 2 Do you have competitors that are already franchises?
It is rare to find an industry in which franchises are not operating in, and this can be a positive sign. The presence of successful franchise operators in a particular industry signifies a healthy industry in which your business may have success in franchising too. Franchises can often dominate an industry they operate in, which means franchising can offer excellent potential for growth.
Question 3 Can your business be replicated with a newbie business owner?
The key to a successful franchise is often attributed to replicability. If your business is highly dependent on you running it, or in your specific community with your specific partners and employees, then it is probably not suitable. On the other hand, if someone with little to no industry knowledge can consistently and reliably duplicate your product or service, then your business model is likely a good candidate for franchising.
Question 4 Could your business open in a new city and become profitable in a reasonable period of time?
Similar to question three, this question alludes to the necessity of your business working in diverse circumstances. If your business will only work in one location or community, then it is possibly not right for franchising. However, if your business model meets a universal need in a variety of locations and circumstances and can serve large number of customers consistently, while upholding your brand standards each time, then franchising can be an excellent expansion strategy for you.