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Should I Franchise My Business?

There are many variables that a business must consider before embarking on a franchise development program. “Should I franchise my business?” and “Is my business ready to franchise?” are a couple questions to ask as a first step to determine if franchising is a viable expansion method for your business and whether the business appears to have the key “markers” that indicate franchising may be a viable expansion method. To provide an initial assessment, we recommend completing our “15 Key Questions Franchise Quiz.”



Please enter your contact information below if you would like to submit your quiz results to us for our review. Since the questions have been weighted based on their importance to the decision to franchise a business, we would like to have the opportunity to provide you additional considerations and information based on your responses.

Although there are additional factors that enter the decision to franchise your business as outlined further below, the number of positive responses to the questions in the franchise quiz is a good indicator of your company’s initial franchise potential. Once you have completed the franchise quiz, you will have the option to submit your contact information and quiz results to us for our evaluation. Since the franchise quiz questions have been weighted based on their importance to the decision to franchise your business, we encourage you to schedule a free “Franchise My Business” consultation so that we may provide you additional considerations and information based on your responses and franchise quiz score. We will email you your franchise quiz responses and score within one business day and invite you to schedule an initial call or web meeting. We look forward to discussing your franchise quiz and expansion goals with you!

When prospective clients contact us, they sometimes ask, “How do I determine if franchising my business is the right thing to do?” A related question is, “How do I determine if my business is ready to franchise?” At FranSource, we believe one of our key responsibilities when consulting with a prospective client is to assist them in determining if they are ready to franchise and if franchising their business is the right method of expansion. This involves evaluating a number of different factors, such as:

  • Does the company operate a type of business that is conducive to franchising?
  • What is the competitive nature of the industry relative to the number of similar existing franchise concepts?
  • How have the similar franchise concepts performed over the previous few years (i.e., is the number of franchises continuing to increase or are they decreasing)?
  • How does the business “stack up” against other similar franchise concepts. This includes:
    • The existing level of systemization in the business operation
    • Gross Revenue
    • Net Profit
    • The projected ROI for a franchisee
    • Cost of Goods Sold (if applicable)
    • Location criteria and square footage
    • The current branding relative to the design and signage components
    • The total investment required to open a location
    • The number of years in operation
    • The number of existing locations
    • The types and effectiveness of local advertising programs
    • The number of positive online reviews
    • The number of social media followers and the amount of engagement with customers/clients
    • The overall brand equity and marketing system readiness. In other words, is your brand franchise-ready?
  • Does the company have a management team that is qualified, willing, and able to provide the high levels of training, support, and assistance that is required to ensure franchisees are successful?
  • Does the company have sufficient working capital to devote to a franchise development program and to support the first-year costs and expenses?

As previously noted, the 15 Key Questions Franchise Quiz is an initial indicator of a company’s ability and readiness to franchise. However, there is much more that should be evaluated as outlined above. Although not all inclusive, the above list provides a good overview of the key aspects of a business that we evaluate to assist prospective clients in determining whether their business is ready and able to franchise, and whether franchising is the best expansion method for their business. If you would like our assistance with answering these two important questions, please contact us and we will be happy to assist you.