Welcome to 2009, a year that is sure to be interesting, challenging, and hopefully lucrative for franchisees and franchisors alike. We just couldn't let 2008 pass with pointing out an excellent article from the December issue of Business Week magazine that spells out the virtues of franchising.
The article offers prescient advice about some of the important practicalities involved in franchising, including utilizing top-notch consultants and employing sound legal advice. Also featured are three important questions prospective franchisors should ask themselves before commiting themselves to franchising:
1. Firstly, is your flagship business successful? Your flagship's success will provide the blueprint to a thriving franchise operation.
2. Is your business solely reliant upon your presence? If work is stopping you from taking a vacation, handing over the reins of your franchised business to a manager may prove extremely difficult.
3. Is your business idea simple enough to be franchised?
"Any business that requires a specialized skill or creative talent—say, a restaurant with a complicated menu or a boutique clothing store—isn't ideal. Relatively simple concepts tend to do the best because they appeal to a diverse pool of would-be franchisees and are quick to launch."
If you've answered 'Yes' to these three questions, odds are, you have a business concept that's perfectly suited to franchising.