IS YOUR BUSINESS READY TO FRANCHISE?
Franchising help businesses to grow rapidly to take advantage of market opportunities by leveraging the capital and efforts of their franchisees. It allows business to capitalise on highly motivated owner-operators. It vastly reduces the need for expansion capital and, of course, risk. However, not all businesses are cut out to be franchise. Here are few things for you to consider and understand whether your business ready to franchise: –
1. Do you have a proven prototype?
Any potential franchisor must ensure the prototype business unit is proven and provide an adequate return for franchisees. The prototype business unit offers stable operating and business structures for future references. You should also have multiple separate locations trend data. Having multiple locations provides many benefits such as stronger leadership and sharpening management skills.
ATTENTION: We help to develop new franchise business model/concept and its prototype development business unit if it deemed necessary. We also consult and establish a proper reporting and monitoring structure system. Call 016 276 5616, email info@smartfranchise.com.my to explore how we can help you.
2. Is your business adequately differentiated from your competitors?
Is your business backed up by a strong corporate image? Is it marketable as a business opportunity? Does it have a sustainable competitive advantage? Can you train franchisees to successfully deliver the same products or services that have made your business a success? The products uniqueness should lead to franchisees reliability on the franchisor.
3. Is your business is duplicable and scalable?
The key to success in franchising is to ensure your business model are easy to be replicated. Ideally, a franchise concept should be relatively simpler to operate and should be able to work in a variety of markets. Franchisees that can bring some special skills/qualification to the businesses would definitely a plus point!.
4. Does your business have the credibility?
Does your company have experienced management? Do you possess a track-record of success? Have you achieved good local press or public acclaim?
5. Do you have sufficient support system?
Comprehensive support system should be in place to support franchisees. There are some fundamental support systems are required such as training, site selection, marketing, head office support and etc.
If your business does meet these criteria, then you are on the right track, but those are just the surface analysis. In order to be franchisable, the business model also needs to be attractive to the potential franchisees. If franchising strategies are in place correctly and thoroughly, this would mean growth to your business, bringing it to a larger market segment.
If you are going to franchise your business, do it right. LET’S TALK FRANCHISE.
For a FREE Professional Assessment of whether your business can be franchised, call 016 276 5616 or email info@smartfranchise.com.my