To Franchise or Not to Franchise
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Ive had quite a few business associates encouraging me to franchise my retail business. How do you really know if thats a good idea? Is there a profit sign-post? Or?
I believe that there are a multitude of elements that go into (or should go into) the decision to franchise or not franchise a business.
The first is always whether there exists a business system that can be replicated over a number of other locations under the direction of various owners or managers beyond the founder. This not only means the obvious, meaning has the entrepreneur built a teachable business, but also is the business one that can survive (with reasonable assurance) beyond the founders location or regional appeal? (Many destination establishments are conditional upon look, style, or ownership, and are not good franchise candidates. A famous food destination with specific neighborhood appeal would be a good example.)
Of course, beyond the capacity for repetition, there are elements of franchise feasibility such as timeliness of the concept, financial returns, and personality.
Above all else, franchising is a method of distribution, and the question to be answered is whether or not franchising is the best alternative to other means of distributing the businesss products or services.
These issues would be a good start for considering the franchise alternative, but there are many others.