You may have a product or experiential business you believe has universal appeal. If only it could be packaged and become a Benjamin-producing machine. Are visions of sugarplums, yachts, and penthouses dancing in your head? Is the dream instead to be the recipient of a positive income stream that bestows an early retirement? Or do you have solely altruistic intentions? End goals aside, are you franchise-able?
An Un-Examined Business Is Not Worth Franchising
Fifty percent of our marketing empire is dedicated to franchise marketing because it is so singular in nature and requires unique promotional skills sets as opposed to those devoted to more traditional marketing. This alone speaks volumes about franchise structure. Contrary to Marketing 101’s commitment to differentiation…your business or concept must ironically conform in some regards to be worth franchising in the first place.
In this arena, it is not about how your journey must “begin with one small step” — your business may not have any business becoming a franchise and should just stay put.
While fast food has lost some of its charm because of widespread commitments to farm to fork and organic alternatives, McDonald’s is arguably the most popular franchise ever. That’s mostly because of the pioneering techniques of Roy Croc. One of his famous innovations being the concept of selling single-store franchises as opposed to the era’s more common territorial sales. This offered the ideal yin/yang of franchise success: it allowed individual owners to make money in a shorter period and it simultaneously curtailed that same individual’s regional control; keeping the power in the hands of the franchisor.
What else did this guy do for the Franchise World? He popularized its framework: the assembly line, the calibrations, the standards, the rules franchisees must follow so the product lovers would know exactly what they were getting every time they visited. A place where those one-of-a-kind french fries could be relied upon. And each fragrant expectation was wrapped up in red and yellow, topped with signature golden arches.
Are You Franchise-able?
The franchising concept is inherently delicious. Besides being a lucrative proposition rife with passive monetary returns, your franchise represents business ownership to someone who may not otherwise have had such an opportunity. But does your business have what it takes?
Here are our Top Five Franchise Questions:
- Is your concept proven? Does the business boast the numbers that support the profitability for your idea of delivering beer via drone to ice fishermen on their boats? (It actually did, but the FAA shut them down. So proof of concept must include that the enterprise operate safely and legally!)
- Is your concept/business model easily duplicated? Is your food truck successful because you’re a staple in your neighborhood? Are you the jolly guy with the caramel popcorn who sells those golden kernels of calories at every local school sporting event? Or could your business stand on its own? Is it scalable?
- Is your business distinctive? Can you distinguish yourself in an industry likely crowded with similar products, or do you seriously have a unique selling proposition that can appeal in multiple geographical territories and to interested investors?
- Do the numbers make sense? Is the initial investment and associated on-going fees proportionate to the potential earning of the franchisee so you all make money and never sacrifice quality or reputation?
- Who’s Minding the Store? Do you have an infrastructure or management team committed to supporting the franchisees and facilitating their ability to represent the brand and perpetuate its growth?
If you’ve been in business any length of time, there are phases that lead to processes that lead to success. Perhaps you are on the verge of striking an obscenely lucrative gold mine, but your company’s path from innovation to global (or even regional!) domination via the franchise route may still not necessarily be plausible.
Know your numbers, your industry, and who your competitors are. Call us if you’d like more information. We know people.