Below are certain basic characteristics that must be met by the business organisation to take on the franchise route
Below are certain basic characteristics that must be met by the business organizations to take on the franchise route:
Investigate 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.
For expanding a business through franchising, you should come up with something refreshing and unique. There are already a number of players in the market and competition could be cutting-edge, so you have to be adept at amplifying the USP of your business to gain a 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 their units successfully. This 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 relation.
Well, at the end of it, if your business has all these characteristics,do not waste time and go ahead and spread across the nation.