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IS YOUR BUSINESS FRANCHISABLE?

07 Dec 2017 1658 Views

The question we got very often is this; “is my business franchisable?” or “can my business be franchised?”

If you are a business owner with a few stores that are doing quite well, the idea of franchising your business may have crossed your mind. Why not? Franchising has made many brands household names, making their founders supper wealthy.

It takes a lot to build a successful franchise and to help others do the same within your system. The average business owner – savvy as they might be – has no idea what it takes to transition from what they have now to a franchise. To successfully build a franchise, you need to be able to replicate what works best for a business over and over – a task that is not always possible.

What other important things do you need to understand about how to create a franchise system?

Is your business successful?

Franchising is all about success and taking the business, brand, systems and know-how that have allowed you to make your business a success and duplicating these systems for your franchisee partners. Your business must be successful and must have a track record of results.

Is your business scalable?

Can your business model be successfully duplicated by franchisee partners? If it can, then your business is scalable. The biggest challenge of building a franchise is taking the success of the individual business and scaling it to a franchise model. This means it needs to be profitable, needs to service an active market, and needs to include systems that can be easily duplicated.

Does your product or service have widespread appeal?

Your business may be a hit in your market, but will it be equally popular in other parts of the world? Also consider whether you'll be able to get the materials, supplies and skilled employees you need in other locations. For example, a fresh seafood restaurant in South Africa might have trouble shipping fresh supplies to a franchise location in Dubai.

What shortcuts should you avoid?

The truth is there are no shortcuts when building a franchise model. To build a successful franchise you need to put in the research and the work. You need to make sure your business makes sense as a franchise and then help those who invest in that franchise succeed.

Ready or not?

By now you may have a good idea of whether your business is suited for franchising. Equally important is the question of whether you are ready to be a franchisor. Creating and running a franchise system may require a different set of skills than opening and running your own business. You'll likely be spending less time in your business and more time meeting with attorneys, developing a marketing plan and finding financing for your venture.

If you would like to know more about how to build a franchise or speak with someone about whether your business or idea would make a great franchise, please click here.