Franchising for Entrepreneurs?

There are three quick and dirty tests for whether or not a business might be a candidate for franchising:

1. Is it a good moneymaker? The old rule of thumb is that the franchise company is going to take a royalty fee of about one-third of the expected or average profits to cover their service expenses and make money. Is that going to leave enough profit for the franchisee to get a good return on their money? If not, it will be very difficult to recruit franchisees.

2. Can you systemize the operation of the business to make it simple enough that any reasonably talented and smart individual can follow your instructions after a fairly short training program and be successful? If it is more difficult than that or requires a lot of special skills or education, it may not work because the prospective franchisee pool will be too small.

3. Is it fairly easy to market the business so that you attract a sufficient number of customers at a reasonable price? If not, then you’re going to end up with failures and that’s not going to be good for anyone.  Franchising for Entrepreneurs

Franchise?

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