Here are some questions to ponder before making the leap into becoming a franchisor
Certainly there are many questions posed to prospective new clients considering franchising and significant time spent with the client evaluating their offering but there are some questions that tend to resonate and “get the ball rolling” with most companies.
Franchising is a very powerful business model which is why it is so attractive to entrepreneurs who want to expand their brands. It is also layered and involved; franchising has many idiosyncrasies often overlooked by the emerging entrepreneur such as the unique business relationship between franchisors and their franchisees. When considering franchising, entrepreneurs often place an emphasis on the product/service above all else leading them to believe if they produce the best widget they will in-turn be the best franchise. With these understandings the following questions might make sense.
- What do you feel are your advantages over other companies in your marketplace today and how would the franchisees capitalize on this advantage?
- On average how long would it take to train someone to be proficient in running your type of business and are there any particular functions that might prove more difficult?
- What type of income could one expect to make by operating a replica of your current model in a new market if they were relatively successful?
- Franchising is a relationship based model requiring long-term stability. Do you feel you are the type of individual capable of creating and managing relationships over the long-term?
- What is the reason you are considering franchising as a model for expansion? What are you goals for the expansion?
While these are not the only questions to consider they will help start the process of determining if franchising is a good model for expansion and your quality of life.
It is recommended you contact an experienced franchise consultant to further explore the opportunity and dive deeper into the specifics of transitioning your business into a franchise company.
By: Michael S. Johnson
