How do I know if my business can be converted to a franchise model?

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? […]


Converting a business to a franchise model and be boiled down to 12 critical factors:

  1. Does the business operate in a large and growing market?
  2. Is the growth in the market likely to be sustainable?
  3. Are margins attainable by franchisees sufficient to stay competitive and profitable?
  4. Can the product or service demand a price premium?
  5. Does the franchisor have access to sufficient development capital?
  6. Does the potential exist to establish a memorable brand?
  7. Is there a substantial barrier to entry?
  8. Is it possible to grow a franchise culture in the company
  9. Does the concept have staying power?
  10. Is it relatively easy to train new franchisees?
  11. Will the franchise development costs allow for adequate returns for the franchisor?
  12. 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.

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

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