Is your Brand Franchisable?
Apr 02, 2020 06:50 pm | Franchising
Before having your brand go through the process of franchise development, it’s important to note if your brand is ready to be franchised. Franchising is a big step for a brand, and to ensure profitability, you have to know if franchising is right for you.
1. Is your business scalable?
Since your business model, training procedures, products, and more are going to be copied by different franchisees, you must determine if this is possible in the first place. Go through the different components of your business and ask, “Can this be properly copied and implemented?”
2. Is your brand protectable?
To ensure franchisees don’t copy important elements of your core brand, make sure to protect the essential elements of your brand. Elements such as your brand name, logos, and even recipes should be protected either legally or through NDAs.
3. Can you continue to provide assistance?
Franchising isn’t just about the franchisee paying the franchise fee and you handing them the products in return. Before and after the franchise’s opening, your brand must be committed to assisting the franchisees.
4. Can you sell your brand to both consumers and franchisees?
Although your product may do well among consumers, you must also be able to treat your potential franchisees as consumers and treat your brand like a product. Then you can ask, “Are people going to buy my brand?”
5. Do you have enough capital?
Investing in franchising your business requires a lot of capital for development, supplies, and more. Before considering franchising your business, consider the amount of capital you have and if it’s enough to both sustain franchise development and your day-to-day operations.