Before you set out to incur major expenses and make a serious commitment to franchising your business, you should clarify the answer to the following questions. While this is not a comprehensive or exhaustive list, it contains the major recurring issues to be addressed, by Samuil “Elik” Buschkin
- What are the growth prospects for my industry?
- Will the concept represent a worthwhile return on investment for the franchisee?
- What tangible evidence for the value and viability of my model do I have?
- How replicable is my business model?
- Who is the competition in this market?
- What makes them stand out and be competitive?
- What is the level of direct competition?
- What are the unique competitive advantages that my model has?
- How easily teachable is my process and methodology?
- Do I have the proper franchise resources, i.e. finances and people, to franchise my business?
- Are there licensing hurdles (in some states) for my business model?
- Is there anything that will make finding the right locations difficult for my franchisees?
- Do I know what type of unit / territory I will need to provide to my franchisees to make it viable?
- Is my supply chain flexible or am I vulnerable because my franchisees will be tied to certain suppliers / vendors?