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I believe that there are a multitude of elements that go into (or should go into) the decision to franchise or not franchise a business.
The first is always whether there exists a business ‘system’ that can be replicated over a number of other locations under the direction of various owners or managers beyond the founder. This not only means the obvious, meaning ‘has the entrepreneur built a ‘teachable’ business’, but also is the business one that can survive (with reasonable assurance) beyond the founder’s location or regional appeal? (Many ‘destination’ establishments are conditional upon look, style, or ownership, and are not good franchise candidates. A famous food destination with specific neighborhood appeal would be a good example.)
Of course, beyond the capacity for repetition, there are elements of ‘franchise feasibility’ such as timeliness of the concept, financial returns, and personality.
Above all else, franchising is a method of distribution, and the question to be answered is whether or not ‘franchising’ is the best alternative to other means of distributing the business’s products or services.
These issues would be a good start for considering the franchise alternative, but there are many others.