Many business owners consider franchising because it
multiplies and maximizes a company's profit making potential. If
done correctly, franchising provides a steady income stream that
greatly exceeds your profits from a single-location business.
Here's how to decide if your business might benefit from
becoming a franchise.
A successful franchiser must be able to teach and train their
One of the keys to successfully franchising is having the
ability to teach franchisees how to duplicate the way you run
your business. The simpler it is for you to teach your proven
systems to others, the faster your franchisees will be up and
running and the more likely they will be to duplicate the success
of your original business.
A successful franchiser gives franchisees a little
Franchisees are independent businesspeople who pay to join
your proven business system. You must be able to give the
independent owners the freedom and flexibility they need to
manage their own franchises.
Control freaks rarely make good franchisers because they tend
to treat the owners as their employees instead of their partners
Successful franchises have marketability
If you have a strong brand, a unique product or service and
local demand, franchising your business might be the right
Consider the regional and national appeal of your business.
The more marketable your franchise system is across a wide range
of geographic areas, the better the chance that franchising your
enterprise would succeed.
A potential franchiser can demonstrate consistent returns on
Profitability is a primary determining factor in the success
or failure of a new franchise. Potential investors understandably
only want to put their money into a business venture that offers
them a guaranteed return. You must be able to demonstrate a
consistent record of profitability to successfully franchise your
Franchising isn't the right course of action for all business
owners. Many people who successfully operate single-location
businesses just don't have the right character traits to cut it
as a franchiser. If you do possess the qualities found in
successful franchisers, then prepare a thorough business plan,
get your management team ready and get your franchising idea up
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