Is Your Business Ready To Franchise?

As  a successful business owner, the thought of franchising your business has probably crossed your mind several times. Building and expanding your brand into new territories and possibly even internationally sometimes seems like a pipe dream and will unfortunately remain so for many and the dream will die.

However, by answering these twelve questions, see if your business passes the acid test for you to realise your franchise dream.

• Is the Market Large and Growing? It is imperative that your business operates in a market with sufficient demand to support a franchise network and a growing market is essential to sustain long-term growth.
• Is Market Growth Sustainable? Your business should have  the potential for sustained growth over the long term as franchise agreements typically span several years, so it’s crucial that your market will support this duration.
• Do Margins Cover Management Services Fees? Your business’s profit margins should be enough to cover both the franchisee’s return on investment and the management services fees you’ll charge.
• Can Your Product Command a Premium Price? Are consumers willing to pay a premium for your product (quality) or service (excellence)?
• Do You Have Sufficient Capital? Ensure that you have the required upfront capital to develop the franchise concept, create franchise packages, and establish infrastructure.
• Is There Potential to Build a Strong Brand? Your business should have the potential to become a strong, memorable brand to attract customers and franchisees alike.
• Is Your Business Unique? A unique concept that offers something distinctive that can’t be easily replicated should ensure that your business is more likely to succeed in the competitive franchising market. 
• Will You and Your Franchisees Receive a Good Return on Investment (ROI)? The  costs associated with franchising must justify the potential returns.
• Can A Franchise Culture be Cultivated? Your business must be flexible and supportive to foster a culture of openness and learning among franchisees.
• Does Your Concept Have Endurance? Think long-term about the viability of your concept having a vision for the future and a strategy for continued success.
• Are Skills Easily Transferable? The skills required to run the franchise should be easily learned and transferred, as lengthy training periods could deter potential franchisees.
• Are Systems and Procedures in Place? Effective franchising relies on consistent systems and procedures for replication to support franchise operations.

 

Successfully franchising your business is all about doing it right the first time. If you’re ready to speak to someone about the possibility of franchising your business, I encourage you to contact me kevin@safranchisebrands.co.za to advise you in the best possible way.

Kind regards,

It’s Not Who You Know, It’s Who Knows You™

SA FRANCHISE BRANDS