How To Tell If Your Business Can Be Franchised    

Franchising a business is perhaps the easiest way for brand expansion. Especially when your business is booming, you might think of taking it up a notch and bringing your products or services to other places, under a virtually new management, but still under your supervision.

You might have the idea, but do you have what it takes to be a franchisor? Here are some factors to consider if you are thinking of entering franchising:

Profitability and Brand Success

While it may be true that profit is not the sole measure of brand success, to franchise a business is to make sure you return value to the franchisee; otherwise, the franchise is a failure.

Franchising is highly dependent on the brand success. To start with, you should be able to articulate the brand, what it does, and the systems that go behind it. You should be able to describe every aspect of branding and operation not just to investors but also to franchisees.


If you are to enter franchising, you should be able to clone your business in a different setting. You should be able to develop systems to ensure franchisees deliver the same quality of products or services you offer, and to deliver the necessary products and support system they need for their day-to-day operation.

For a business model to be able to be franchised, it should be easily duplicated: not necessarily easily copied, but teachable given the proper training and back system. For example, some businesses are one-hit wonders in a unique place, such as a restaurant having a superstar chef, but cannot operate in a variety of markets where that chef is already not available.


The most successful franchise systems are most often not the ones who have the best ideas, products, and services, but those with an exemplary commitment to build and nurture this system. Commitment to growth and working with multiple experts at a time determines your success.

Committing to a multiple-year plan of growing your franchise, though you might think this is too far from now, should be a consistent deed. The mindset that a franchise works with focus and consistent execution is the real way to grow and expand a brand.


The expansion program entails requirement of funds that may vary based on the type of business and the stage of development. Developing a marketing program and back office system for the franchisee to follow, and hiring experts such as franchise lawyers, accountants, and franchise consultants to draw up legal documentation and business structures are all essential for a new franchise to substantiate. Costs also multiply during brand development and finding potential franchisees.

Capital is a very important factor in determining if one is ready for a franchise. It can either bring a more abundant cash flow or be a big loss when the franchise flops.

Franchising is a straightforward path that needs very serious specifications that are necessary for a great chance of success. Some of these specifications may be too rigorous to develop, and this is why you might need a company to help you through the next step in your business venture.

Aiming to franchise a business but not sure where to start? Contact your local franchise legal team today.