Saturday, June 13, 2009

Should You Franchise Your Business - 20 Questions

There are a number of variables of a company should consider before embarking on the development of a program for the franchise. In a first step in determining the viability of franchising your business, you should consider the following questions:

1. Does the company have the following processes and procedures (oral or written)?
2. Others can be trained to reproduce the system?
3. Have more than one site currently in operation?
4. Does the industry to grow?
5. The current operation to serve as a prototype for the franchise model?
6. Staff members have identified, which provides free training and support for franchisees?
7. Is profitable business?
8. Will earn enough to allow the edge of a percentage of sales paid for by the company's franchisee in the form of fees and still provide a fair tube for the franchisee?
9. Is the only company in its industry?
10. Does "good" franchisee is identified?
11. Individual investors have expressed interest in opening a franchise company?
12. Are there economies of scale associated with purchasing, advertising and administrative functions will increase as additional locations are added?
13. Projections for the initial investment at the beginning of the purchase of franchise (ie franchise fee, equipment, supplies, materials, etc.) allow the franchisee to obtain a return on investment quickly enough?
14. Are there aspects of franchise business?
15. The company is a new concept?
16. Have "sources of supply for equipment, materials and supplies has created?
17. The company offers a sales and / or marketing programs for franchisees?
18. Community to provide assistance in obtaining customers for the franchisee?
19. After "exclusive franchise territories" was founded?
20. Does the company have a reputation with customers and suppliers?

While some companies may answer "yes" to each question, the number of positive responses is a good indicator of your potential franchise. A franchise consultant will help you determine if the full franchise of your business is appropriate.

Stephen Vandegrift © 2009 All rights reserved

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