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Qualities of a True Franchise

Written on July 27th, 2007 by Joseph in Franchise Industry.

by Will Kiesling

You’ve landed on a successful business in one location. Do you have what it takes to be the next great franchise opportunity?

Here are some factors that make up a true franchise and fodder to consider before considering franchising your business:

Credible
In order to establish a franchise, you must have a proven track record. Does your business have a consistent stream of income and steady profit margin? The overall business concept must be reproducible on a national scale and a viable model for others to follow.

Unique
In order for a business to maximize profits, it needs to have some sort of competitive advantage. This applies to franchises as well and you must consider your unique competitive advantage. Some questions you might ask are as follows: Where does your business excel? Does it have a sustainable competitive advantage? Is it different enough from competitors? Check here for more unique business models.

Reproducible
Reproducible models and franchising should be synonymous. A true franchise needs to be easily replicated and learned within a viable time frame. Relevant questions for individuals looking to franchise their business include: Do you have a standard operating procedure? Could others learn to operate this business in 3 months or less?

Profitable
Every business comes down to the bottom line. In order to effectively franchise a business, you must provide an adequate structure that will provide good returns on a franchisee’s investment.

These are but a few of the many factors involved in considering franchising or becoming a franchisee. Information is readily available for those who seek it and it pays to “do your homework” when it comes to franchising. Proven industry experts at Brand Expansion can help take your business to the next level.