When you franchise a business and approach a bank, you should know that we would ask the following questions:
- Is the business model/concept franchisable (is it scalable)?
- What level of investment has been made/will be required to develop an appropriate support infrastructure (training to the franchisee, opening store assistance, advertising, site selection, on-going support etc)?
- Has a disclosure document and franchise agreement been compiled?
- Has an existing ‘franchise store’ been piloted (normally require a 12 month track record to show viability of the concept)?
- How will you select future prospective franchisees?
- Once the above has been ascertained – the sales plan to promote the concept will then need to be considered.
However, your best option is to contact a franchise consulting firm who can guide you through the above before embarking on a sales plan to promote the franchise.