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Questions to Ask Yourself to Decide whether to Franchise Your Business

050120-N-6125G-071 Persian Gulf (Jan. 20, 2005) Ð Culinary Specialist Seaman Charity Beckett relax as she plays bingo, sponsored by Morale, Welfare and Recreation (MWR) aboard USS Harry S. Truman (CVN 75). Carrier Air Wing Three (CVW-3) is embarked aboard Harry S. Truman and is providing close air support and conducting intelligence, surveillance and reconnaissance missions over Iraq. The Truman Carrier Strike Group and CVW-3 are on a regularly scheduled deployment in support of the Global War on Terrorism. U.S. Navy photo by Photographer's Mate Airman Eric S. Garst (RELEASED)

When a business becomes successful and has achieved a certain amount of growth, the natural step is to expand or diversify. When we get to this point, franchising is one of the best ways to expand your business. Many successful organizations have followed the path of franchising for exponential growth. Indeed, some brands have conquered the world through franchising and licensing their products and services.

However, franchising is not for all businesses: you have to first consider whether it is the right decision for your business. Here are six crucial questions business owners should ask themselves before making the plunge.

1. Is my Business Well-Known?

Franchising will only by successful if your business is successful in your field and has built a strong reputation over time. Entrepreneurs will only be interested in collaborating with successful, trusted brands that are well-known on the market.

One of the foremost considerations of potential franchisees is whether the brand has established a name that helps franchisees can leverage to be successful level too in a period of short time. Therefore, having an established brand name is a prerequisite for any business that is thinking about franchising.

2. Is My Business Model Easily Transferrable?

Some business models may not be easily transferrable depending on various factors, such as the nature of business and regulations. Therefore you should carefully evaluate this when deciding whether to franchise your business or not. Some organizations run well only when managed closely. If they are multiplied and distributed over a vast region, they may not be as successful. All aspects of the business must be transferrable to running a successful franchise model, including the systems, operations, technology, and processes.

Typically, franchisees are exact duplicates of the original establishment. If the head office has a specific method or process, the same applies to franchised branches. For example, if the main branch conducts sales and receives payments using an ePOS payment system, the same procedure should be followed by all franchisees.

3. Am I Capable of Macro Management?

Managing franchisees is different from managing an independent business. In a standalone business, you only need to manage operations, finance, resources, and workforce of your own organization. You are generally located in one place, with your people and materials within easy reach. However, when you have franchisees, you need to oversee and continuously monitor the operations of multiple establishments in diverse locations. This can be more complicated than you think, particularly if your franchise rapidly expands.

4. Is your Business Model Easy to Train?

A franchisee needs to train their entire staff before they can start operating.  However, a franchise model could see numerous branches opening in diverse locations simultaneously. If this is the case, training such a vast number of people could become unwieldy, depending on your business processes and procedures.

If your business model and its processes are highly specialized and require a considerable amount of time and sometimes sophisticated equipment for training, things become very complicated. The business models that are best suited to franchising are those with the easiest and straightforward training.

5. Can Prospective Franchisees Afford the Franchise Offer?

If the terms of a franchise offer are unrealistic, people may not be interested in it. Entrepreneurs look for franchisees that provide high value at a reasonable cost. Sometimes, brands come up with franchise offers mostly to generate income through franchise fees, and the support and quality of service may not be up to the mark. Entrepreneurs look for franchise opportunities with continuous support and training without exorbitant fees.

6. Am I Selling Something That Works Everywhere?

When you are looking to franchise your business, you must also consider whether it has the chance of success in other regions. Sometimes, you could run a highly successful organization, but only in your local area, due to various reasons. Your product may not be in such high demand in other areas.

In other cases, regulations may restrict conducting your type of business in other areas. In such a situation, if you decide to offer franchise plans you will likely struggle to find entrepreneurs to become your franchisees. Even when there are no specific stumbling blocks, your product or service might simply be something that is not easily transferrable to other places.


Franchising and licensing have made empires out of small businesses. However, it is not necessarily suitable for all organizations. Your answers to the above questions will provide valuable insights as to whether you should take the path of franchising or not. If you’re still unsure, you may find it worthwhile to approach professional business consultants who are well-versed in the franchising rules and prospects. Experts like a legal advisor, bank and financial expert can also guide you in various aspects related to franchising your business.