Below are certain basic characteristics that must be met by the business organisation to take on the franchise route
Almost every business can be franchised and its presence can be enjoyed everywhere. Franchise is without any doubt an incredible method to extend your business. It encourages you cover the whole country under the umbrella of your image. To influence a franchise business to work, it is vital for both the franchisor and the franchisee to assemble a solid business connection.
A business that has the potential to be sold as a franchise opportunity usually have the characteristics such as an established business, its unique selling preposition, teaching ability, and the promise of an adequate return on the investment.
Opting for franchise model in spreading out the presence of your business across the state or nation, you have to check the following features in your business.
Check your Credibility
Your business has to be credible, in a sense that you should have an experienced management. Your company must hold a good track record and a proven business philosophy. Acclamation from your customers or the local press is also necessary to move ahead in franchising.
How Unique Are You?
For expanding a business through franchising, you should come up with something refreshing and unique. There are already numbers of players in the market, so you have to be careful in using the USP of your business to gain competitive advantage. Your business should be marketable as a business opportunity.
A Teachable Business
Yes!! Your business philosophy should be teachable. It means you should be able to make your franchisees learn the same tactics and techniques in a limited period of time to operate successful business. It is possible only if you have well documented operating procedures.
Be in the Profit Zone
It is the most important aspect of a franchise business. If your business cannot generate 15- 20 per cent return on investment after deducting the monthly overheads and royalties, then it will be difficult to keep your franchisees with you on a long term relations.
The Final Agreement
If your business meets the above criteria, then you can expand through franchising. Before finalising your decision of taking a franchise route, it is very important to develop a sound business plan. This plan must incorporate the vital issues like the tactics to speed up growth, financial analysis in terms of franchise fees and royalty, territorial development, training and support services. Importantly, make sure that you can invest enough time and inclination to support your franchisees.
So, if you also have a business which is doing perfectly well for quite a long time, and now you also think of expanding its reach across India, then franchising is the perfect option for you. It is like finding a way to expand and maintain the set standards of your business simultaneously. Franchising is the most suitable way to continue to gain brand recognition and market dominance.
Well, at the end of it, if your business has all these characteristics then do not waste time, go ahead and cover the nation.