There are several questions you should ask yourself before deciding if you should franchise your business.
In their book Franchise Bible: How to Buy a Franchise or Franchise Your Own Business, authors Erwin J. Keup and Peter E. Keup detail both the basics and the finer points of this popular means of expanding a business. In this edited excerpt, the authors describe how to determine if your business would benefit from franchising.
Can your business be franchised? If you have a successful business that is susceptible to a regional or national system of marketing and you don’t want to share control or risk the personality conflicts that come with bringing in investors, then franchising may be your best course of action. To help you determine if your business could be franchised, review some of the qualifiers and considerations described below.
First, evaluate yourself as a potential franchisor. Someone who might successfully operate a business that is susceptible to franchising may not be cut out to be a franchisor. Remember that franchising is more than the business of selling services or products. In addition, you will be an educator, trainer, psychologist, minister, and perpetual hand-holder to your franchisees. You will also be a fee collector, extracting an initial fee for the franchisee to begin business and then collecting royalties for the life of the franchise.
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