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.)