What To Consider Before Franchising
Taking into account the various factors that contribute to the success of a franchise program, we have identified eight keys to franchisability, against which you can measure your own business:
1. Size and longevity. Has your business been in operation long enough to project its future success? Is it large enough to provide a level of earnings that would make it an attractive investment.
Yes ___ No ___
2. Profitability. Is it making money? Consistently? Predictably?
Yes ___ No ___
3. Teachability. Can other people be taught to run your business in the same way you do, the way that has made it successful?
Yes ___ No ___
4. Systematization. Can all of the daily operations of your business be analyzed and fully described in an operations manual that another individual could follow to produce the same results you achieve? Can every task be replicated?
Yes ___ No ___
5. Marketability. Can your business concept be effectively communicated and sold to others?
Yes ___ No ___
6. Transferability. Can your business work just as well in another part of the country or in different market situations?
Yes ___ No ___
7. Originality. Are you different from your competitors? Just saying "Buy my product or service because I'd rather get rich than have them get rich," will not allow you to be successful, neither in business nor in
Yes ___ No ___
8. Affordability. A business that is profitable for you might not be profitable for the franchisee. Does enough profit remain, after the franchisee has paid the initial investment in your franchise fee, the cost of getting into business, and an ongoing royalty? Will they need significant financing?
Can you help them obtain it?
Yes ___ No ___
Taking into account the various factors that contribute to the success of a franchise program, we have identified eight keys to franchisability, against which you can measure your own business:
1. Size and longevity. Has your business been in operation long enough to project its future success? Is it large enough to provide a level of earnings that would make it an attractive investment.
Yes ___ No ___
2. Profitability. Is it making money? Consistently? Predictably?
Yes ___ No ___
3. Teachability. Can other people be taught to run your business in the same way you do, the way that has made it successful?
Yes ___ No ___
4. Systematization. Can all of the daily operations of your business be analyzed and fully described in an operations manual that another individual could follow to produce the same results you achieve? Can every task be replicated?
Yes ___ No ___
5. Marketability. Can your business concept be effectively communicated and sold to others?
Yes ___ No ___
6. Transferability. Can your business work just as well in another part of the country or in different market situations?
Yes ___ No ___
7. Originality. Are you different from your competitors? Just saying "Buy my product or service because I'd rather get rich than have them get rich," will not allow you to be successful, neither in business nor in
Yes ___ No ___
8. Affordability. A business that is profitable for you might not be profitable for the franchisee. Does enough profit remain, after the franchisee has paid the initial investment in your franchise fee, the cost of getting into business, and an ongoing royalty? Will they need significant financing?
Can you help them obtain it?
Yes ___ No ___