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.

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

3. Do you have a clear sales and marketing plan? Along with your business being established, you also want to make sure that you have clear branding that is consistent throughout your various platforms (websites, social pages, etc.). You’ve registered your trademark and if you haven’t yet, you are ready and thinking about it. You also have clarity around what it is that you do different and better in your space. Another important factor is having a proven sales and marketing funnel. You want to have figured out how to attract and retain customers through this funnel and created a continuous flow of customers. Along with this, you’ve figured out how to get your existing customers to consume more of your products or services and return to your business on a regular basis.

4. Can your business function without you? You should be beginning to add system processes to your business that will allow you to remove yourself from it. Instead of doing the work yourself, you are now the leader of the organization with a team implementing your day-to-day business practices for you. From here, you’ve stepped into a visionary role that allows you to focus on the bigger picture when it comes to your business. Basically, you’ve added system processes in a way that you’ve replaced yourself so that if you didn’t show up tomorrow, the business isn’t going to fall apart.

5. Do you have an end result in mind? You need to begin your franchise journey with the end in mind and start thinking about how to connect with people who would be interested in your business as a franchise. This can be started with an email list. You can keep potential franchisees engaged while you prepare your business to be franchised. Consider sending relevant articles about becoming a franchisee, what your franchise model looks like, or the steps you’ve taken in your franchise journey, for example. Use this engagement as a way to begin a relationship with them so they can tag along for the ride and be kept up to date.

With more than 20 years of experience in the international franchise industry, Marietta Snetsinger is passionate about establishing solid operational systems and leadership within franchise organizations. She played an important role in developing operational support tools and recruitment strategy with brands including M&M Meat Shops and Baskin-Robbins. She is a well-respected franchise expert and speaks at franchise shows across the country. As the founder of Ascend Franchise Solutions, Marietta works closely with small and emerging franchisors, on a daily basis. Reach out to her at marietta@ascendfranchise.com call 519-212-0309 or visit www.ascendfranchise.com.