Wondering how to franchise a business? Before embarking on a franchise development program you’ll want to determine if your business has what it takes to be a viable investment opportunity for investors and if you are ready to franchise your business. Listed below are a few questions that one should carefully consider prior to moving into a franchise model. There are many factors to consider when deciding if franchising is right for your business, however positive responses to the following questions are a good indication that your business might be ready to start franchising.
- Is there more than one location currently in operation?
- Is the current business operation a suitable prototype for the franchise model?
- Is there a system of processes and procedures currently in place for the business?
- Has the business been open and operating for more than two years?
- Are the profit margins sufficient to institute a percentage of the gross sales to be paid to the company in the form of a royalty and continue to produce a profit?
- Are there proprietary systems, products or services in the operation of the business?
- Is the business unique in any way or one of the few within its industry?
- Are there economies of scale related to purchasing, advertising or administrative functions that will increase as additional locations are added?
- Can others be trained to duplicate your existing system?
- Is the current business profitable?
- Have you had individuals or investors express interest in opening additional locations for the company?
Franchise Beacon chooses to work with a select few companies each year to insure that each one of our clients receive service that is second to none, so it is imperative that the company encompasses the following:
- The concept is ready for franchising.
- The company’s existing location(s) is operating successfully/profitably.
- The management and owners of the company understand that there are a tremendous amount responsibilities associated with franchising a business and look forward to assuming this role.
- The company is able and willing to provide the highest level of franchise training and ongoing support to its franchisees.
- Company believes that partnering with Franchise Beacon will be mutually beneficial, enjoyable and rewarding relationship. We at Franchise Beacon feel that a strong collaboration between companies is absolutely critical to the success of any venture. We anticipate a long term relationship with our clients and expect that each of us have the quality of life that we all deserve which is why it’s so important to enjoy the people that you are partnering with.
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