New Franchisors

Fit to Franchise

Not every business can ‎be successfully franchised. Some are not suitable to franchising, whereas others may just not be ready. Take our Fit to Franchise assessment to determine whether you can—or should—franchise your business or brand:

  • Can others succeed in operating your same business but at a different location? If your current business is successful because of its unique location or your personality, then the answer is almost certainly “no.”
  • Does your business have a “secret sauce” that is vital to the business and that cannot be duplicated by others, such that potential competitors and franchisees need to buy into your franchise system to be successful?
  • Do you have at least one currently operating location that is successful? Also consider how long you have been operating this location because by franchising, you are copying-and-pasting this model and brand in multiple locations.
  • Is your business model fine-tuned such that you can copy-and-paste this model as it currently is by permitting franchisees to use this exact same business model? Don’t use franchisees as guinea pigs for developing or tweaking a new prototype.
  • Would your franchisees be able to pay you a reasonable royalty off the top and pay marketing and operating expenses—and still make a satisfactory salary for themselves and a return on their investment (e.g., the initial franchise fee and startup costs)?
  • Can you accurately describe your business’ daily operations in a written operations manual that franchisees can follow? If you have already documented most of your day-to-day operations, even better.
  • Are you able to train a new person to operate your business in a short amount of time (usually less than a month)?
  • Do you have the time or personnel to devote to promoting and selling franchises? Do you have the time or personnel to train new franchisees on the system and oversee their start-up operation?
  • Do you have a reputable brand name (even locally) that can be protected by a registered trademark?
  • Is there a national—or at least a regional—appeal for your brand or demand for your products or services, such that prospective franchisees would be excited to open and operate this business in other locations, and customers would desire to purchase products or services from these franchises?
  • Do you have existing relationships with vendors and suppliers that could supply products or services to your franchisees?
  • Would a franchisee be able to obtain funding to acquire a franchise and operate it, whether from personal sources or lenders? Consider the amount of capital required to open a location and whether a typical lender would lend for such a business model.
  • Do you have the time, money, and personnel resources to franchise your business? Franchising requires significant startup and operating capital (including for preparing marketing materials, documenting the system, hiring a franchise attorney and registering in certain states, and staffing).
  • Do you have the temperament to be a franchisor? Selling franchises is a different business than selling products or services to customers, as your customers are now prospective franchisees.
  • Do you have a reputable franchise attorney (and your general business attorney may not count) who can structure your franchise system, prepare the necessary disclosures required under law, and register your franchise system in states that require registration? You want someone to help you who not only knows the law, but has experience helping others become successful franchisors.
  • While no single factor above is dispositive, the above factors might help you determine whether you can (or should) franchise your business.

  • You will receive a copy of your Fit to Franchise assessment via email.
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