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What type of business makes a good franchise?

Author: Brian Duckett

answered by Brian Duckett

Chairman of The Franchising Centre

The most frequent question asked of the franchise consultants in our team, when approached by someone thinking about franchising, is: “I’ve got this business, can I franchise it?”. We look for several key features, and consideration of these will answer your question.  We look for a business that is operating profitably, ideally in more than one location, and which has a proven and successful operating system. Next we need to look carefully at the how the finances would work, and how the business would be structured ““ the point being to establish whether both the franchisor and the franchisees will eventually achieve sufficient income and make a reasonable return on their investment.  Finally, and arguably most importantly, the business needs to either have, or be capable of adapting to, a culture that lends itself to franchising. That means working together, with clearly identified roles and responsibilities, towards a common aim of building a successful brand.  Businesses that are failing, or are currently no more than an idea, are not good propositions for franchising.

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