Sometime back I created this list of questions an entrepreneur should ask before deciding to franchise their business and recently found someone had took it word for word from my old blog and reposted it on another franchise "experts" blog site.
Basically, I had created a series of questions on what to ask yourself before you consider franchising your business.
Here they are:
1. How long have you been in business? (You should have a track record in your industry.)
2. Is the business profitable? (Remember that you want others to pay you to learn how you manage and operate your business.)
3. Are you selling a consumer service, a business service, a food, a product, or other (can you paint a simple word descriptor of what you do)?
4. Is your business product, service "pan-geographical" Is there a universal need or semi-universal need beyond your area for it?
5. What is the demand for the product or service? (Can you easily market what you can simply describe?)
6. Is it a business meant for, "As such a time as this"? Ahead of your time is not in step with your time. If it is too late or on the cusp of technology extinction, you lose the “first to market” advantage.
7. What is unique about what you do, create, who you are or how others perceive your product/service?
8. Can others be trained to operate a similar business?
9. Have you registered your name with your state? With the US Patent Office? (This can be done while you develop your franchise program.)
10. Do you have a URL, a web site, a blog? (Also can be done while you develop your franchise program.)
11. Is the market for your product or service growing? (See #5)
12. What investment amount will be required for a franchisee to begin business? Is financing available?
13. Do you have an amount budgeted for your franchise development costs? (Do you have finance resources in the wings for your growth and development?)
14. What validation have you generated for your business model? (Industry experts, customers, professional entrepreneurs?)
15. Who are your competitors? (Is this a product that has both direct and hidden or indirect competition?)
16. Who else is franchising in your industry? (This can sometimes help establish your market position NOT whether you should do it.)
17. What are the start up costs including the franchise fee? (How have these been determined and note: This can be adjusted later.)
18.What is the scope of your development in real numbers in 1 year - 3 years - 5 years - 10 years and why? (Think through this - it will establish the financial need)
19. Are their international components to consider in future development and growth?(You don't have to know this now, but it is another matter to consider.)
20. There are at least 3 methods of franchise development - have you considered which best suits your business model and your plans for grow...
Having asked all of those things if you are looking for an expert who has been a franchisee, been an executive with a number of complex franchisee models, consulted with hundreds of franchises and can do everything from hone the concept, to sell your new franchise concept to its first franchisees then give me a call.
John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or my office 480.838.1641
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