Having built up a successful business, many owners are keen to see it continue to grow but are not necessarily sure how to achieve that. One of the options available is to franchise the business, but there are several key points that must be considered by new franchisors if they are contemplating franchising their business.
Firstly, is there long-term potential for the business idea? Will it meet future market demands or is it just a passing trend. Will the business provide reasonable returns to the franchisees enabling them to pay off any bank loans after the initial period, whilst also providing them with sufficient income?
Secondly, does the business have a clear identity with a strong brand and reputation which will enable the franchisee to grow a profitable business with healthy sales. Does it have a proven operational and financial history?
Thirdly, can the business model be easily understood? Do the operating systems require specialist industry knowledge or could a franchisee easily use transferable business skills to make the business successful.
Finally, can you provide adequate support to help the business start-up, grow and evolve? Ongoing support is vital if the business is to be a success. You must ensure that you have the time and resources available to allow you to support the franchisee in making the business a success, thereby protecting the business brand and its reputation.
If you have any questions or need any help in relation to any aspect of franchising please free to call us on 01993 706403 or e-mail email@example.com.