Many times prospective franchisors equate having a "successful" business as proof that he or she should enter the world of franchising. However‚ establishing a franchise requires more than a successful business. For starters you need a business that has established and maintained proven business "systems" and "procedures". Think about your "business systems" and question yourself as to how documented and established these systems are. Also‚ are these systems in your head or are they written down. If they are not written down then do you really know what they are?
Addressing this topic in a recent article‚ "Carbon Copy: Turning your Business into a Franchise"‚ Tony Eames identifies some important "checklist" factors that prospective franchisors should definitely be evaluating. Those factors‚ include:
- Is your business REALLY successful – and different?
- Could that success be replicated?
- Do you have a stand-out brand?
- Do you have detailed‚ tested business systems?
- Can your business continue to adapt‚ evolve and grow?
- Have you got the necessary skills and attitudes?
- Can you create a realistic marketing plan?
- As a franchisor can you keep adding value to the businesses?
- Will you have adequate financial reserves?
- Do you have access to specialist franchising expertise?
When answering these questions "don't just answer yes". Rather give some detailed thought and put in writing why your business is different and how your success may be replicated when discussing "replication" that have been clearly established‚ tested and proven. Most importantly these systems must be transferable and taught to franchisees.
For additional information about franchising your business request a complimentary copy of "The Franchise Formula: A Guide to Franchising your Business in the New Economy" by Charles N. Internicola‚ Esq. or to schedule an appointment to speak with Mr. Internicola contact our franchise law office (nationwide representation) at 1-800-976-4904.
Licensing vs. Franchising