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Franchise & Business Opportunity News

Is Your Business Ready to Franchise?

Written on February 25th, 2008 by Joseph in brandEXPANSION News.

You started a small business that, thanks to your untiring effort and strong business sense, has turned into a thriving operation. You have opened one or a few units and they are also doing very well. The next question arises in this situation how to franchise. Consider these questions as you contemplate this:

1. Does your product/concept have high marketability? While it is quite true that any business can be franchised, it is similarly true that not all business should be franchised. You have to see whether there’s a market for the product/service. It is not that your concept has to be totally radical. Sometimes, many franchise businesses fail just because the people could not identify with them. So, you are supposed to check whether your concept has anything new or unique to offer. Look at the market diligently, before deciding to expand your franchising business.

2.Have you perfected your business system? When you are expanding your franchising business, it is expected to spread its wings in other states, cities and even countries. But, is the administrative side of your business ready to handle all these things? Can you train all the new franchisees in your business model? Make sure that you have compiled a proper operational manual in order to help the new franchisees run the businesses properly on a day-to-day basis. Also, make sure you have a proper management team in place to handle the calls and queries of the prospective franchisees.

3. Are you happy with your product image? Franchising is primarily selling of the product image; each and every franchised unit should look and feel the same. So, you have to develop a prototype that will reflect the essence of your business. Once people come to your store and get satisfied with the services, they are going to remember it for a long time. Hence, you should have a clear view about how your stores will look like. If you are some kind of service provider, then think about how your employees’ uniform and your franchise offices will look like. It is most often observed that several companies, when they become franchisors, develop a whole new image and logo.

4. Do you have the required finance? Never think that expanding as a franchisor will come easy. While spreading your franchising business out, you will experience that you are requiring money in various departments. May be you will have to develop your administrative wing and hire new people to look after this new side of the business. You will also need considerable amount of money in order to advertise your franchising business and develop the UFOC and other franchise-related documents. On the whole, you will need money to keep your business running. Hence, make sure you have enough financial back-up to work out your franchise-expansion plan.

So, what are you thinking of? Is your business ready to expand right now? brandEXPANSION’s development team can assist you in getting off to the right start. Contact them for more information.