Whether or not to franchise is not an easy decision. You’ll need to consider the business issues and weigh the pros and cons from an informed perspective.
Franchising as a rapid expansion tactic is one of several options you should consider for its tremendous potential to grow your business quickly.
How does franchising work? The key is in the creation of systems, which can be successfully duplicated through training and support.
Other characteristics of a business that are attractive to potential franchisees include:
- Good track record of profitability
- Built around a unique or unusual concept
- Broad geographic appeal
- Relatively easy to operate
- Relatively inexpensive to operate
- Easily duplicated
A good place to start is our overview of franchising. You may also access comprehensive information on how to franchise.
Despite the impressive merits, franchising is not for every business.
There is high risk in franchising any new, unproven business.
Established companies that should probably not franchise include businesses:
- Difficult to monitor from long distances
- Requiring large numbers of employees
- With complex operations
- With low profit margins
And being franchisable doesn’t guarantee your success. Franchising the right way will help you to avoid a number of costly mistakes.
How do you tell if your small business (or large business) is a prime franchise candidate?
You can quickly assess whether you are ready to franchise by taking our basic online quiz. Or, you can download our comprehensive worksheet and determine your company’s franchisability for yourself at your convenience.
If you’re ready to franchise, our checklist will guide you through the process.
If you’re still not sure, a Francorp franchise analyst will consult with you on the franchisability of your business.
Other frequently asked questions about how to franchise your business:
- How much time should I reasonably expect to spend in order to successfully build my franchise?
- How much should I expect to pay to build a successful franchise?
- What other resources are available to educate myself about franchising?
- Why Francorp?
The Francorp track record is solid. We’ve consulted with and provided franchising information to over 14,000 companies. We’ve helped more than 5,000 companies to successfully franchise their businesses.