How can I test if my business can be franchised?

Once you have determined your strategic direction, which is effectively a business plan for your franchise, the first step is to test the model with a pilot study. If the business is new, that study should extend over 12-18 months. If it is an older business, this can be between 4-6 months. During this time […]


Once you have determined your strategic direction, which is effectively a business plan for your franchise, the first step is to test the model with a pilot study. If the business is new, that study should extend over 12-18 months. If it is an older business, this can be between 4-6 months.

During this time analyse the feedback from the pilot study in order to optimise operations, processes and systems. This will also give you a good ideal of your ideal franchisee profile. From there, if the study has proved feasible, you need to generate an operations manual, franchisee agreement and disclosure document.

By this stage it’s advisable to hire a franchise practitioner, but be warned, they don’t come cheap – between R400 000 and R500 000. The benefit of this, however, is invaluable as they will scrutinize the offering not only in the marketplace, but also against possible challenges and legislation issues.

Franchise Zone
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Franchise Zone is published by Entrepreneur Media SA. It offers advice and franchising opportunities in South Africa.

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