Thinking Of Franchising Your Business? Consider These Key Factors To Determine If You Can Create A Franchise Business Model
Franchising has a whole host of benefits. Though franchising is the best option for expanding a business, not all businesses make good franchises. There are few essential conditions that any business hoping to jump into franchising needs to cover.
So to know whether your business is franchise worthy, consider these following points.
Unique Selling Point
Franchisees are investors to whom your business must look promising. You want potential franchisees to jump at the chance to put your name on their shop front, so your business needs to have an edge over competitors.
Differentiate yourself by working out your unique selling points (USP). Your USP can be anything from a viral marketing strategy to eco-friendly company values. For e.g.: The famous pizza franchise Domino’s strongly focuses on timely delivery. This helps them differentiate it from the competition.
Easy To Clone
The most important characteristic of a franchise is that the business must be easy to reproduce. Franchising is all about replicating a successful business model. Once you’ve sealed the deal with franchisees, they have to learn everything about its operation within three months. Franchisees want to learn a business quickly because they’re using their capital to stay afloat while waiting for the business to take off.
The key to a good franchise is the ability to accommodate accordingly. Your busin0ess should be flexible enough in order to achieve a higher adaptation to local markets and enhance franchisees’ entrepreneurial attitudes. Not all products can be a hit in every region. Different cities come with different customers, who in turn have different preferences.
“A franchising model should be flexible and work across the globe. If you look at the Indian market, it is quite diverse in the markets across the globe. So, whatever will be saleable in the US or the Australian market might not work in India. Therefore, the franchisees have to tune it accordingly.” said, CMA B. Mallikarjuna Gupta, Associate Vice President GST, Alankit GSP.