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Can my business be franchised?

Franchising exists in more than 60 different industries. Generally, If you can impart the knowledge and skills of running your business to another, i.e. your operations can be handled by a manager, there is every possibility of franchising it. There are many elements to be considered in determining whetherf a business is franchisable. These questions will provide some indication…

If the answer to the above questions is "yes", then it is highly likely that your business is franchisable.

What other expansion options do I have for my company and what are the advantages/disadvantages?

Company outlets – You have complete control and everything the business makes is yours. Requires plenty of capital investment, human resources, high maintenance costs and a very slow pace of unit growth. Also, very difficult to find and keep good motivated managers.

Partnership / Joint-Ventures  -- You would usually benefit from additional resources and skills. However, the control is diluted, difference of opinions becomes a real threat, moderate infrastructure required, capacity to expand depend on partner’s commitment while profits are shared.

Dealership -- Can be widespread, minimal infra-structure and legalities, easier to establish and considerably low maintenance cost. On the other hand, don’t expect much loyalty, your retail or brand name would not be  prominently represented (no focus), no control over how they operate and may not promote your product/service strongly. Dealers usually carry a variety of brands and likely to drop yours if  another better deal comes along.

Multi-level marketing – Low start-up and maintenance cost. Coverage can be extensive but would depend largely on front liners. Success depends entirely on downline members and very dependent on front line leadership qualities. Requires plenty of down-line motivational efforts and a huge amount of your personal commitment. Usually a very short life span as the excitement fizzles out. 

Is there a more effective growth and marketing strategy than franchising?

Unlikely. There is no method allowing a business to expand faster, in larger numbers without exhausting company resources while maintaining consistent quality and control.

Franchising though an attractive option, is not for everyone. First and foremost, you must be totally convinced that franchising is what your organization needs to expand. You must be willing to subscribe to the principles of franchising and support its development. Unscrupulous practices, inadequate development (infrastructure, etc.) and non-committment will destroy your franchising potentials.

Why conduct an evaluation?

An evaluation is the logical first step in deciding to franchise. It would be wise to know the requirements and returns before investing.

What if the evaluation is not favorable?

In most instances, your business concept and operations would be deemed to have reasonable   possibilities in franchising before we undertake the Preliminary Development Review. In any case the outcome is not favorable, we would usually make recommendations and identify solutions.

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