Converting a business to a franchise model and be boiled down to 12 critical factors:
- Does the business operate in a large and growing market?
- Is the growth in the market likely to be sustainable?
- Are margins attainable by franchisees sufficient to stay competitive and profitable?
- Can the product or service demand a price premium?
- Does the franchisor have access to sufficient development capital?
- Does the potential exist to establish a memorable brand?
- Is there a substantial barrier to entry?
- Is it possible to grow a franchise culture in the company
- Does the concept have staying power?
- Is it relatively easy to train new franchisees?
- Will the franchise development costs allow for adequate returns for the franchisor?
- Are adequate systems and procedures in place that can be replicated across multiple franchises?
Consider your answers to these questions and you should have a good idea of whether the business is able to sustain itself as a franchise.