8 Questions To Ask Yourself Before Franchising Your Company

For entrepreneurs who have built a successful business, expanding is a natural next step. But this is easier said than done. When beginning to grow, business owners can be met with several challenges they might not have anticipated. This is why many entrepreneurs turn to the franchising industry for help. The franchise model can be an excellent way to reach your expansion goals. 

By franchising, entrepreneurs have the chance to create a proven system that local owners in a variety of markets can replicate to find their own success. Having franchisees develop a business presence in their own neighborhoods allows franchisors to focus on bigger picture development efforts and reach even more customers. 

However, before going into franchising, there are several questions that business owners should ask themselves. 

1. Does your business make you happy? 

To start off simple, it is important that the business in question is something that truly makes you happy. If you don’t love what you do, it can be harder to sell the model to others. 

“When I started Frios, I realized it was something I could have fun doing and share that happiness with others; it wasn’t some overcomplicated system that did it,” said Cliff Kennedy, CEO of Frios Gourmet Pops, a mobile popsicle franchise. “Once you find your happiness and what gets you motivated, you're more inclined to be excited about it and passionate about it.” 

2. Is your business replicable? 

Your business might be successful in your hands and in your market, but is it something that can be replicated by someone else in another part of the country? This is an important factor when it comes to franchising. Local owners need to be able to adopt a system that has been thoroughly vetted by corporate owners and proven to lead to positive results. 

“There’s a huge difference between doing it yourself and having someone follow what you set out for them,” said Kennedy “You have to ask yourself if your business is replicable and if you are willing to do that.”

Kennedy added that you have to be able to hand over your business to someone else and still have that same culture, customer service, and a consistent product or service that you are offering. 

3. Do you have the right systems in place? 

Creating a franchise with growth potential and strong awareness goes far beyond a logo and an idea. To make a brand successful while being repeatable requires systems for franchisees to be able to follow closely. Because franchisees are taking on an already established business plan, they need to be able to dive into operations without the knowledge that a brand’s founder has. 

“You have to have your systems and processes in place,” advised Kennedy. “For those first five or 10 franchisees, you have got to have every problem solved and every solution ready to go because those are going to be your validators to take you to that next level.” 

4. Are you working with the right team?

Franchise concepts require a strong group of people to take that business to the next level. And this might require some extra work until you find the right fit. 

From consultants and corporate team members to franchisees and their employees, it’s key for brands to build a network of like-minded individuals who share the same passion and drive for success. Expanding with the help of the right people sets up brands for continued growth in the long term.

5. Will the numbers work out well for your franchisees?

Prior to launching a franchise, businesses need to be sure that their sales and profits are something that can be achieved in other communities as other local owners get their businesses off the ground.

Finding the right people to partner with is dependent on several factors, but ultimately comes down to whether or not it will be a successful venture for them. And the money they are making plays a major role in that. Because franchising comes with a significant investment, brands need to be confident that the payoff will be well worth it for franchisees. 

6. Are you able to provide support? 

One thing that can make all the difference in whether a franchisee is having a successful experience or not is the support of the franchisor. When franchisees sign on to develop a brand, they’re going to rely heavily on a corporate team to help get their businesses up and running. 

Franchisors are responsible for guiding their owners not only through the grand opening process but on a regular basis. 

7. Are you a good leader? 

Running multiple units is a completely different game than running just one. As your company grows, your role in the business changes. You may no longer be involved with all decisions, and you have to determine if this is something you are ready for. That’s when having good leadership skills becomes critical. Are you ready to become a mentor for the people around you, and to communicate that vision, delegate and hold others accountable?

8. Do you have a clear vision?

Having a clear vision is a crucial element when it comes to achieving growth. For franchisors, communicating their vision with franchisees and getting behind that vision is essential to meet goals. And it’s important to surround yourself with people who share your vision and values.