Before offering it to anyone.
WHAT TO ESTABLISH FIRST
Whether the business actually works.
WHAT THAT MEANS
Profitable For long enough to be demonstrable Without depending on you personally
WHY WITHOUT YOU
A model that requires the founder cannot be operated by anyone else.
HOW TO TEST IT
Operate a second location, yourself, successfully.
WHY A SECOND LOCATION FIRST
It proves the model transfers, and it reveals what must be documented.
WHAT TO ESTABLISH SECOND
Whether it can be documented.
WHY
A franchisee follows a system, and a system that exists only in people's heads cannot be transferred.
WHAT TO ESTABLISH THIRD
Whether the economics support two parties.
WHY
The franchisee must earn a return after paying you, and the model must generate enough for both.
WHAT TO CALCULATE
Franchisee profitability after all fees.
WHAT TO ASK
Whether it is attractive enough for someone to invest.
WHAT TO ESTABLISH FOURTH
Whether you can actually support franchisees.
WHAT SUPPORT REQUIRES
Training capability People to provide ongoing help Systems for monitoring Time
WHY IT IS UNDERESTIMATED
Franchising is a different business from the one you currently run.
WHAT THAT MEANS
You become a provider of systems and support rather than an operator.
WHAT TO CONSIDER INSTEAD
Company-owned expansion Licensing Partnership arrangements
WHAT TO AVOID
Franchising to raise capital.
WHY
It is expensive capital and it brings permanent obligations.
