Franchise Criteria: Is Your Business Ready To Be Franchised?
Do you currently operate a business that could expand to become a successfully networked franchise opportunity? Knowing whether or not your business is suitable for franchising takes some careful consideration. Below we have included a helpful checklist that will help you determine whether or not your business model is ready to be come a franchise.
Your History
Franchising successfully is all about cloning a financial business model that already works. It is important that there is enough business history to support realistic financial projections.
A Proven Model
Great franchising requires that the franchisor has learnt enough to develop their business model so that it can be easily replicated. Your business has to have existed long enough to prove that it can be successful. This way the person who invests in your franchise as a franchisee can do so with confidence.
Brand Image
A strong brand image must also be developed in order to become a franchise. Potential franchisees will want to invest into a recognizable name with a clear identity. Your brand image should be simple, and easy to emulate. You should also have a clear value system and company mission statement that can be easily followed.
Corporate Image
The corporate image of your business should also be developed through signage, protected brand, signature colors, uniform and graphic design. The best future franchisees will be attracted to franchise opportunities that have a strong corporate identity already in place.
Professionalism
The professionalism of your business is illustrated in all aspects of your business operation. How do your employees interact with customers? What kind of communication does your business use? How do other perceive your business? These are all important things to consider before your franchise.
Product and Service Longevity
In order to procure interest from potential franchisees you need to have a product or service that with stay power. What this means is that your business must be well established and be able to prove long-term sustainability in the market.
Profit!
Last but not least the final determining factor as to whether or not your business is ready to be franchised is profit. A business that cannot deliver a sufficient profit margin cannot be franchised because the franchisee will not be guaranteed any benefit from their investment.
In order to successfully franchise a business it must first turn a substantial profit on it’s own. This way, when the business model is replicated success for future revenue will be much more likely.