|Eight questions to ask before franchising your business|
By Chad Finkelstein
July 20, 2011
Before taking the plunge into franchising your business, there are a number of questions you should be asking yourself. Taking the time to give these ideas some thought, and even putting pen to paper, is likely to get you to better organize your business plan, as well as help you understand the foundation upon which your system and concept will be built. Ask and answer these before getting started:
- What’s the product or service?
- What’s the competition like? Is your product or service unique enough to stand out in a crowded field? Are there any hurdles to entering the market that you should be aware of? Are there regulatory obstacles to franchising a business in your particular industry?
- Will it be manageable for someone else to copy that model under your supervision, or does it only work under your direct implementation?
- How many corporate-owned units do you have, and how are they doing financially?
- What are your financial resources?
- Do you own any intellectual property that needs to be protected, such as trade-marks, or maybe even patents? Are they sufficiently registered and protected already?
- Where will you find franchisees?
- Apart from your support team, what’s your internal team like? Do you have the right people to see your vision through? Are they capable of tracking down the right talent and helping to realize your visions and goals?