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Are You Ready to Franchise Your Business?

Written by: John Power

Article Overview: This self-evaluation will help you decide if you are ready to franchise your business.

Are You Ready to Franchise Your Business?

You will want conduct a brief evaluation of your business to get an idea of its franchisability. While there are other factors that should be considered, this will give you the basic criteria. Do not worry about the answers being right or wrong. Most questions are to get you to think objectively about your business, and for background information. Even though some of these matters can be decided during the development process, it is good to start thinking about them now.

1. How long have you been in business? (You should have a track record in your industry.)

2. Is the business profitable? (Remember that you want others to pay you to learn how you manage and operate your business.)

3. Are you selling a consumer service, a business service, a food, a product, or other (describe)?

4. Can your product or service be sold in other areas of your state, and/or the country?

5. What is the demand for the product or service?

6. What is your timing in the industry? If you are very early, your risk of failure may be higher. On the other hand, if you are late, you may lose the “first to market” advantage, which can be substantial.

7. What is unique about what you do?

8. Can others be trained to operate a similar business?

9. Have you registered your name with your state? With the US Patent Office? (This can be done while you develop your franchise program.)

10. Do you have a URL and a web site? (Also can be done while you develop your franchise program.)

11. Is the market for your product or service growing?

12. What investment amount will be required for a franchisee to begin business? Is financing available?

13. Do you have an amount budgeted for your franchise development costs?

14. What will be the source of your franchise development funds?

15. Who are your competitors?

16. Who else is franchising in your industry? (This can sometimes help establish the market, but it is not necessary.)

17. How much are you thinking of charging for the initial franchise fee? (This can be adjusted later.)

18. How many franchises do you plan to sell in 5 years? In 10 years? (Also can be decided later but good to think about.)

19. In what geographic areas do you plan to sell and develop franchises? Now? In five years? Long term? (You don't have to know this now, but it is another matter to consider.)

More information can be found at:  www.biltmorefranchise.com

Related Articles
  Are You Ready to Start a Franchise?
  Franchises
  Franchising First Steps
  Questions to Ask Before Buying a Franchise
  Franchising is a Design-Build Program

Article Tags: background information, br 2, br 3, business service, franchisability, franchise development, franchise program, franchisee, risk of failure, us patent office



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Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Fed rate cuts . . . - So just what do the newest Fed rate cuts mean to Franchise and Business Opportunity investing? Is it immediately felt? What timeframe do you think, or rather, where are we in terms of new vs. existing business investment? A similar question can be composed for the economic stimulus checks - will they a have any effect if consumers spend a little $$
Re: Hello EvanCarmichaelers, and Thanks! - "Carmichaelers" ..nice.. Over at the Young Entrepreneurs I'm going to start calling my readers "DSilvelers" - I like the sound of that! Welcome on board theFranchiseMarket. Do you run a Franchise Business or are involved in Franchising in anyway?


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