Franchise Worksheet
Taking into account the various factors that contribute to the success of a franchise program, we have identified seven keys to franchising, by which you can test if your business can have a successful franchise:
Size and duration of work. Is your business running long enough to predict its future franchise success?
Is it big enough to provide a level of income that would make it attractive to outside investment?
Profitability. Is it making a good income? Is it stable? Regularly?
Systematization. Is it possible to analyze and fully describe all the daily operations of your business in a manual that can be used by another person to achieve the same results that you have achieved? Is it possible to repeat absolutely every task?
Difficulty in implementation. Is it possible to quickly bring your business concept to life in the field?
Mobility. Can your business perform as well in another part of the country or in the market situations of other countries?
Originality. Are you different from your competitors? Do you have fresh ideas? For example, fitness centers sell subscriptions before each new division opens, thus providing the division's start-up income before operating expenses are incurred.
Availability. A business that is profitable for you may not be profitable for your franchisee. Is there enough profit left after the franchisee pays your franchise fee, business costs, and ongoing royalties? Will they need significant expenses? Can you help them at first?