Is franchising a legitimate option for your business?
When making a decision to franchise, the first step is to determine if franchising is even a legitimate option for the business owner. At the initial client meeting, a basic 10-point franchisability test is conducted to determine the franchising potential of the business in today’s market. While not a definitive, applying this test to the business will at least allow you to know where you stand and perhaps provide you with some insight as to how a business must be improved in order to franchise. If the results are positive the project moves into the Initial Planning Phase and a more comprehensive evaluation is carried out.
The second step is to ensure that business owners have a thorough understanding of what is involved in franchising, in terms of resources, costs, and personnel.
Although an individual may be a successful entrepreneur with respect to the development of one or more business units, they may lack the expertise necessary to develop a successful franchise system. Accordingly the company provides a full range of services from analysis through to development and successful implementation.
Assuming that a business is considered to be franchisable and the business owner has the resources necessary to succeed, the next step is to determine if franchising is the best strategy based on the business owner’s personal goals and objectives. Simply because a business can be franchised does not mean that it should be franchised. The pros and cons of alternative strategies should be compared to a franchising strategy. Each strategy should then be evaluated based on the goals, objectives, resources, and tolerance for risk.
Our policy is to work with clients that meet the following requirements:
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The business concept has a track record of success and has been operating for a reasonable period of time.
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The business is in an industry or field that has grow potential or offers a new approach in an existing market.
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The business would be appealing to prospective franchisees.
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The ownership and management of the company understands what is involved in franchising and has the ability to grow with the franchise program.
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Prospective buyers of the franchise should realistically be able to recover their investment within a reasonable period of time from the earnings of the business.
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The company should be able to train franchisees in the day-to-day operations within a reasonable period of time.
The Franchise 101 Development Program
If you are planning to expand your business you should be talking to Franchise 101 Incorporated.
We can help! Franchise 101 Incorporated develops specially designed programs to help franchisors improve franchise sales effectiveness, generate more leads, develop additional revenue streams, improve franchisee relationships, maximize field visits, implement management information systems and improve strategic planning.
