Tweet

Franchise Your Business

Written by: John Power

Article Overview: Before you begin to franchise your business, it is important to consider its "franchisability."

Franchise Your Business

Franchise Your Business

"Fran-chis-a-bil-ity": The ability to franchise your business.

Before you start to think about franchising your business, it is important to consider the "Franchisability" of your business.

Franchisability requires:

1. Successful model. There should be a successful model before attempting to franchise. It is difficult to sell copies of your base business if it is struggling. One of the first questions will be, "How is your business doing?", and they will want to see some numbers, which have to be presented in a very specific way.

2. Availability of franchisees. Does a large base of potential franchisees exist that can be taught how to successfully own and operate the business? Are the skills necessary to be one of your franchisees pretty common, or is the business so complex, with such challenging requirements, that the franchisee may have a difficult time operating it? Are certain degrees or certifications required that will reduce the number of people who could buy your franchise?

3. Replication. The business needs to be able to be duplicated over and over. Sometimes this is limited by industry, legal, or geographic restrictions. Think Subway in this regard. The same Subway format functions almost anywhere, and many thousands of them have been opened.

4. Unique customers. Franchises with an assigned geography have unique customers. Internet companies may do business worldwide. There needs to be a means to assign and track customers. The franchisee needs to be able to develop their own customers.

5. Reasonable investment. This is not to say that franchises requiring a $5 to $10 million investment cannot be sold, but franchises under $100K have a much larger base of potential buyers. If bank financing is required, it will be more difficult to get the franchises open than if not.

6. Competitive in its market. The business needs a unique value proposition, or compelling message, in its market. Me-too franchises generally experience limited success. Honestly evaluate your market position. Think about the larger competitors who lead your industry and the effect they can have on your franchise system.

7. Budget. There needs to be a sufficient budget to initiate the franchise program and carry it through the start-up phase. It does not take "six figures" to develop a franchise program, but you need sufficient to initiate the program and start selling franchises.

I will be pleased to provide a no-cost initial consultation if you wish.

For more information, or to contact me, please visit: www.biltmorefranchise.com

Related Articles
  Franchising with all its Success
  About 60% of all franchise opportunities have less than 50 units.
  Why Use a Franchise Consultant?
  Did you know: NIIT Franchise was present in Malaysia in 1997?
  Master Franchises Explained

Article Tags: 10 million, base business, certifications, franchisability, franchise, franchisee, franchisees, franchises, geographic restrictions, geography, internet companies, ity, nbs, nbsp, regard, replication, subway



Related Forum Posts
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?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Coaching Tip: Identify Your Core Values

The OLD Way of Advertising, May Not be so OLD

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.