Is my business ready to be franchised?

There are three core boxes that need to be ticket before you should consider franchising your business.

  • Is there demand or are you able to sell your franchise concept? Not every idea is sexy, cool and appealing, but your concept must possess something that sets it apart from the competition. To sell your concept, the idea must have credibility in the eyes of potential franchisees.
  • Is the concept replicable? Walk into any Mc Donald’s around the world and they’ll have the same look and feel, the food will taste the same, and the service will be of the same quality. Are you able to duplicate your concept? Make sure your products or services are not confined to a regional or one of a kind product, service or location.
  • Are you able to provide franchisees with an appropriate return on their investment? Perhaps the most important factor, does the concept allow for enough profit after your royalties have been deducted to make the investment worthwhile for prospective franchisees in terms of money and time?
Tracy Lee Nicol
About the Author
Tracy-Lee Nicol is the managing editor of Franchise Zone Magazine and deputy editor of Entrepreneur Magazine. She studied her Masters degree in Art History and Visual Culture at Rhodes University and spent the next two years working and travelling in Asia. Her love of people, business and teaching is reflected in telling the stories of entrepreneurs, franchisees and franchisors, inspiring others to take the leap to being their own boss and bringing about positive change in South Africa.

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