Franchising could put your business on the path to hypergrowth, but only if your business model is a fit.
Fast-food restaurants aren’t the only types of businesses that can be franchised; financial planning, convenience stores and beauty salons are other kinds of businesses that have proved amenable to the model.
To be franchise-worthy, there are at a couple of conditions you need to meet, notes Maryalene LaPonsie at Small Business Computing.
First, you need to be solidly profitable – and even better, to have done it in more than one location. Occasionally a business becomes so famous that investors clamor to copy it, but business people generally want some solid reassurance before investing in something new.
Second, it helps to offer something unique. And if you’re not first to market, then a novel or catchy way of delivering your product or service could make you unique.
If you meet those two conditions, the third might be tougher: Can you let go of your creation and let someone else run it? You want to screen franchisee candidates carefully and set proper restrictions and responsibilities, but once you’ve done all the necessary preparation, it’s time to let go, albeit with some manner of ongoing support and involvement.
If you think your business qualifies, find a good franchise attorney to make sure all your bases are covered. The International Franchise Association is another good resource to help get you started.
Adapted from 3 Things to Consider Before You Franchise at Small Business Computing.