Is my business franchiseable?

by Charles White | Articles
2 minutes
Business Analyst Min

In the last three years since the pandemic, the franchise industry has seen a meteoric rise in the volume of franchise transactions, the number of franchise brands entering the market, and growth in franchise gross sales volume. With so much energy and momentum behind the market, it makes sense that more and more businesses would consider franchising as a way to scale their business model. When should you Franchise your business?

We use the term “franchisable” frequently in the franchise development market to define the ability of a brand to become a franchise model effectively. How do you determine if your business is franchisable?

It starts with you as the founder and CEO of your brand. You should have the vision and focus of growing and expanding your business into new markets. There must be a drive and energy that comes from the leader of the business for the brand to be franchisable. We have seen many businesses with less firepower outperform businesses that were extremely well positioned simply because the owner wanted it more.

Next, what do you bring to the market and how do you sell your goods or services? Is there a consumer market for your offering in areas outside of your immediate geography? The franchiseability of any brand is directly linked to the size and growth of the consumer market for your product/service. A big market means a greater degree of franchiseability.

Then, look at your business systems. How do you manage the business, do you have people you’ve hired and trained, and developed? Do you have technology in place to operate the day-to-day? Is there a consistent marketing mechanism in place to drive new customer traffic? How tight are your training and operating procedures? All of these elements will play a role in the franchiseability of your model.

Finally, look at your market and the competitive landscape. How saturated is your industry with competitors and what do you offer that is unique or compelling to present against these other brands? Do you have some unique technology, vendor arrangements, or business development systems that could be leveraged to create a unique selling proposition for your franchise system? The more we can stand out from our peers, the more franchisable our business model will be.

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