Is Your Business Franchisable?

When businesses are doing well, business owners naturally want to keep the momentum going. One way to accomplish this is starting a franchise. If you’ve started considering whether your should franchise your business, a key question to ask is: is my business franchisable?

The short answer: any type of business can be franchised. But for more lucrative results, it should have the following characteristics:

• Credibility. Companies that have experienced management and a proven track record are more likely to be recognized by consumers in a crowded marketplace. Even a strong social media presence can help boost franchisability.
• Uniqueness. Your business is going to have competition, but a franchisable one is easily differentiated. A solid plan will help sustain your competitive advantage.
• Teachability. Standard operating procedures should be easy to learn and implement. If you’re going to be opening multiple locations, you’ll need systems in place for franchise owners to efficiently replicate your business model and launch in a short amount of time.
• Profitability. Just because one storefront is profitable, doesn’t guarantee they all will be. But franchises need to generate enough money to pay salaries and deduct royalties to stay afloat.

Businesses that meet this criteria are considered franchisable. But this is just the beginning. Once you’ve decided to franchise, the real work begins to plan for expansion, support, conflict, legalities, and sustainable growth.