Franchise Strategy & Feasibility

Making the jump into franchising can be scary. It’s a leap of faith, and there may be bumps along the way. The payoff can be monumental, though, if franchising is indeed the right move. It’s important to honestly assess your business before attempting any franchising and ask yourself whether it’s a viable model to duplicate as a franchise before you jump into how to franchise a business.

If you decide that your business is suited to franchising, you don’t have to do it on your own. You can get expert help from Franchise Genesis for assistance with legal issues, business licenses, and every other issue that comes with franchising.

Franchise Feasibility

When considering whether or not to franchise, it can be difficult to nail down an objective measure of whether or not it’s the right choice. To be sure, franchising is not the right decision for every business, so how do you know if it’s right for you? You can start by assessing the overall feasibility of a franchise plan for your business. Feasibility refers to the likelihood of a franchise plan to succeed, and you can measure feasibility based on the following three unique factors.

ROI Potential

Your potential return on investment is one of the most important considerations when you’re determining the feasibility of a franchise plan. A good benchmark for measuring franchisees’ ROI is aiming for a 20% annual ROI on top of a standard salary. For Franchisors, an ideal ROI is variable. It may take several years to see a significant ROI, so it’s up to you to determine what number is satisfactory — and determine whether or not it’s a reasonable goal.

Scalability

Another important consideration is the scalability of your business. You may be extremely successful and yet completely unscalable, in which case, franchising is not an option for your company. To determine the scalability of your business, ask whether you have a wide appeal to the general population and ask, further, whether your product can be easily expanded. If your suppliers are limited, or if you make one-of-a-kind products, these are examples of obstacles that may hinder scalability.

The Business Owner

You might not think of yourself as an important factor in your business’ franchise feasibility, but you are. To successfully launch a franchise, you need to be determined, dedicated, and ambitious. Plenty of business owners are equipped to run a single business, but you accept responsibility for coaching and mentoring multiple stores owned by franchisees. Ask yourself whether this is something you can handle before you embark on the path to franchising.

Capital Availability

If you satisfy all of the criteria mentioned above, you’re on the right track to establishing your franchise — but feasibility isn’t the only part of the equation that you need to pay attention to. You also need to have the resources available to enact your franchising strategy. Generally speaking, launching a franchise can cost anywhere from $150,000 to much more depending on the nature of your business and the size of your operations.

Legal

Every franchised business must satisfy its jurisdiction’s legal requirements. The reach of these requirements depends on the sector you’re in — for example, a medical office attempting to launch a franchise will be subject to more strenuous legal requirements than a retail store. It’s important to consider this and prepare for managing all the legal challenges that may arise when you launch your franchise.

Franchising Strategy Development

Developing a franchising strategy can be difficult — especially if you’ve never done it before!

Franchising can be a rewarding endeavor if you do it right, and doing it right is simpler than ever when you have franchise experts on your side. Franchise Genesis specializes in helping businesses like yours launch successful franchises.

Once you've decided whether to buy a franchise or start your own, reach out to Franchise Genesis!

 
Fill out the form below for more information. Can't wait? Call us at (980) 737-0540.

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