Not every small business is going to be a good candidate or lend itself to franchising. In fact most are not. As a small Business Broker and a franchise consultant for over a decade here are my top questions I ask business owners who are curious if their business has the right ingredients to be franchisable and ultimately successful.
1. Can you validate your concept is proven and profitable?
2. Has your business been established 1 or more years?
3. Do you have more than one location open and is it profitable?
4. Is your business model or concept unique?
5. Does your business model offer any unique or competitive advantages?
6. Is your business model easy to teach and grasp?
7. Is your business model easy to duplicate?
8. Do you have established systems and operating procedures in place?
9. Do the products and services you offer have sufficiently juicy profit margins that will keep a franchisee profitable (and happy) after paying franchise royalty and marketing fees?
10. Can you demonstrate your concept is proven and profitable?
I listed question number 10 twice because you would be amazed how may small business owners I have spoken with think their business or business model is Franchisable when they can not currently demonstrate profitability or proof of concept. My last question (which is not on this list) for a business owners who is considering franchising is would you buy or invest in your own business model as a franchise?
Get A Free Franchising Consultation: Still curious about whether your business is a viable candidate for franchising? Or are you convinced and ready to move forward? Feel free to go here to request a free franchising consultation from a professional franchise development consultant about whether your business is a strong candidate for franchising and what the potential costs and time frame for development and launch are.