5
Questions an Emerging Franchisor
Should Answer “Yes” to
Before Franchising by Marietta Snetsinger
Have you been thinking about franchising but aren’t sure if your business is ready? It’s important to look deeply into every aspect of your business to evaluate if it’s suitable or ready to franchise.
Here are 5 questions to ask yourself before you Franchise:
1
Is your business highly profitable?
Profitability is important in determining whether or not you’re ready to franchise. What is considered highly profitable? You want to be generating more income than your direct competitors or other similar businesses in your industry. There needs to be enough margin in the business to allow yourself and your franchisee to receive a percentage of it while still generating revenue. As an emerging franchisor, you’ll need to go line-by-line through your business to ensure that all possible areas that could increase the profitability of your business have been executed. This could include incorporating any technology that might help. Overall, you’ve gotten your business to a profitable place.
44 The Franchise Woman
2
Is your business established?
Is your brand or name recognizable? Are you considered a subject matter expert (SME) in your area? Do you have positive reviews on Google? You want to be able to answer yes to these questions as a way to ensure you’ve established your business and to continue to positively grow your reputation. You need to take action in order to build your reputation because the better your reputation, the more attractive your business is to potential franchisees. If you haven’t taken steps towards establishing your business, you can work on it right now. Here are some easy ways to start establishing your brand and growing your reputation today: • PR events • Personal branding Association involvement • Writing articles Speaking events • Apply for awards
