IS YOUR BUSINESS READY TO FRANCHISE? TAKE THE TEST
Factors to Consider:
There are many factors to consider in determining whether your business is ready to be franchised. Here are 12 points to contemplate in making the franchise decision.
1. How unique is the business?
2. Is your business consistently profitable enough to provide a sufficient return for a franchisee to be willing to invest in a new location or outlet?
3. Do you have at least one exisitng location or prototype operation offering retail products or services? If so, how long has it been operational?
4. Can your business be duplicated at a new location or outlet?
5. How much would it cost to duplicate your business so that a franchisee can earn a sufficient return on its upfront cost?
6. Can the concept be easily taught to others? Can your business be taught to a 3rd Party through an Initial Training program? How long would it take to train others to run your business as you do?
7. Does your system have a clear identity in the marketplace that you can protect against others? Have you taken all necessary steps to protect the distinguishing features of your stores, including your name, logos, and designs? Can you effectively protect your trade name, trademarks, service marks and branded logos? You will need to make sure these items are capable of trademark and/or copyright protection and obtain this protection prior to starting your franchise. You should speak to an attorney experienced in trademark and copyright issues.
8. What type of competitors exist in the marketplace?
9. What is the current and future projected demand for your product or service?
10. Do you have a proprietary concept that others would be willing to pay to learn?
11. Will you be able to deliver on-going value to the franchisees after they have learned your system? Do you have the necessary management skills/team to implement and administer a franchise system?
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