Whether or not to franchise isn’t an easy decision. You’ll need to consider the business issues and weigh the pros and cons from an informed perspective. Franchising as a rapid expansion tactic is one of several options you should consider for it’s tremendous potential to grow your business quickly. How does franchising work? The key is in the creation of systems which can be duplicated through training and support. Other characteristics attractive to potential franchisees include businesses:
- with a good track record of profitability.
- built around a unique or unusual concept.
- with broad geographic appeal.
- which are relatively easy to operate.
- which are relatively inexpensive to operate.
- which are easily duplicated.
Despite the impressive merits, franchising is not for every business.
There is high risk in franchising any new, unproven business. Established companies that should probably not franchise include businesses:
- difficult to monitor from long distances.
- requiring large numbers of employees.
- with complex operations.
- with low profit margins.
Is your small business (or large business) is a prime franchise candidate?
You can quickly assess whether you are ready to franchise by taking our basic online quiz. Or, you can download our comprehensive worksheet and determine your company’s franchisability for yourself at your convenience. If you’re ready to franchise, our checklist will guide you through the process. If you’re still not sure, a Francorp Franchise Analyst will discuss with you the franchisability of your business.