If you are one of the millions of Americans currently...
Many business owners consider franchising because it multiplies and maximizes a company's profit making potential. If done correctly, franchising provides a steady income stream that greatly exceeds your profits from a single-location business.
Here's how to decide if your business might benefit from becoming a franchise.
A successful franchiser must be able to teach and train their franchises
One of the keys to successfully franchising is having the ability to teach franchisees how to duplicate the way you run your business. The simpler it is for you to teach your proven systems to others, the faster your franchisees will be up and running and the more likely they will be to duplicate the success of your original business.
A successful franchiser gives franchisees a little independence
Franchisees are independent businesspeople who pay to join your proven business system. You must be able to give the independent owners the freedom and flexibility they need to manage their own franchises.
Control freaks rarely make good franchisers because they tend to treat the owners as their employees instead of their partners in business.
Successful franchises have marketability
If you have a strong brand, a unique product or service and local demand, franchising your business might be the right step.
Consider the regional and national appeal of your business. The more marketable your franchise system is across a wide range of geographic areas, the better the chance that franchising your enterprise would succeed.
A potential franchiser can demonstrate consistent returns on investment
Profitability is a primary determining factor in the success or failure of a new franchise. Potential investors understandably only want to put their money into a business venture that offers them a guaranteed return. You must be able to demonstrate a consistent record of profitability to successfully franchise your business.
Franchising isn't the right course of action for all business owners. Many people who successfully operate single-location businesses just don't have the right character traits to cut it as a franchiser. If you do possess the qualities found in successful franchisers, then prepare a thorough business plan, get your management team ready and get your franchising idea up and rolling.