How to Build a Successful Franchise System

Franchising takes many elements to be done successfully.  Many business owners don't realize that the most critical of all ingredients to a successful franchise organization is the core business that is being franchised.  In order to successfully franchise a business, the business being replicated should have these critical elements in place before going to market.


1.  Profitable - a business should be profitable enough for an owner operator to warrant the risk of opening the business and investing the capital into the franchise launch.  This typically would mean an income of $60k-$100k depending on the initial investment and the business type for the franchisee.  If you aren't making money in your business, there is little reason to beleive that a franchisee will do any better.

2.  Market - There should be a large and growing market for your product or services.  Franchising is a leveraged way to expand and capitalize on a growing consumer demand that can't be serviced by your own employees.  When the market wants your products in a big way, franchising allows you to build the network needed to deliver.  A la McDonald's!

3.  Systems - Your business needs to be systemized in order to be franchised successfully.  This means that if you are in a retail or restaurant operation, you should be using a qualified POS system which allows you to manage sku's, menu items and other goods for sale in the business.  If it is a service business, it means that you shoul dhave some kind of a scheduling software or marketing program that allows you to consistenly market or replicate service to the customers on a broad basis.

4.  Demand - People will typically tell you that they are interested in your business as a franchise.  When customers, vendors, friends and family begin asking whether you are a franchise or if they could buy "the first one", you know that there is a market for what you have as a franchise.  Look for the demand, then offer them the product as a franchise of your business!

For more information on how to franchise your business, contact one of our franchise consultants

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