For very good reasons, the questions of “is my business franchisable?” and “can my business be franchised?” come up often. Assuming that you possess the right mindset and franchise goals (a topic that we discuss in a separate article) there are core franchise factors that either your business must possess or you must be willing to develop before franchising. These franchise factors will determine whether or not your business is franchisable.
So, if you are a successful business owner and you are considering franchising, evaluate the following franchise factors to determine if your business is franchisable and whether or not franchising may be right for you.
Franchising is all about success and taking the business, brand, systems and know-how that have allowed you to make your business a success and duplicating these systems for your franchisee partners. Your business must be successful and must have a track record of results.
Can your business model be successfully duplicated by franchisee partners? If it can, then your business is scalable.
Scalability questions to consider, include:
As a franchisor one of the primary assets that you will be licensing and conveying to your franchisees is your brand. So, your brand needs to be protected and secure. To protect your brand, you need to own and control your business and trade name and , at the most basic level, (a) register your trademark (i.e., your brand name) with the United States Patent and Trademark Office (USPTO) and (b) control the website url domain name for your brand (i.e., www.yourbrand.com).
Brand protection questions to consider:
Many times the most successful franchise systems are not the ones with the best ideas, products or services, they are the ones with the best execution and commitment to building a franchise system. Whether your franchise management team will start off as a team of 1 (just you) or a team of 4, franchise success and the franchisability of your business has a lot to do with your commitment to building a franchise system.
Launching a franchise is like launching any new business and new businesses require the right budget and capital to grow. Shortcuts are not the answer and before franchising your business you need to understand what your franchise goals are, how quickly you want to achieve them and the right budget necessary to get you to your goals. Remember, launching your franchise system is not the finish line, it is just the start.
Budget questions to consider:
In the franchise development process, it is critical that you understand and evaluate these franchisability factors and have an open and honest discussion about these factors with your franchise lawyer and franchise development team. Remember, franchise success has so much more to do with execution, establishing the right plan of action and associating yourself with a team of trusted advisors who will leverage their know-how to elevate your business and brand. There are no short-cuts and understand that if these franchisability factors are not lining up for you at the moment, then, right now, your business is not ready for franchising.
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