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It may or may not come to you as a surprise, but most successful business owners do consider franchising their concept as a means of expansion. And, when you reduce the entire issue of franchising to its essence, franchising is just that – a means of expansion or a ‘method of distribution’. And of course, the idea is to use OPM (other people’s money) and OPT (other people’s talent) to incrementally expand the network.
However, the bigger question should always be: ‘Should I franchise my business?’ While it’s true that any business ‘can’ be franchised, it is more appropriate to state that only certain businesses ‘should’ be franchised.
After many years of study and observation as a fee for service franchise consultant, I have been presented all manner of ideas (yes, ideas not actual businesses) to be franchised, and of course, I always say ‘No’. An idea cannot be franchised, only a proven concept with well designed ‘systems’ in place should be considered a candidate for franchising. In fact, if a business is not systematized, it should never get off the drafting table of franchise possibilities.
I am going to stay on the subject of franchise feasibility for a while, but please think over this opener and let me know your reaction.
More to come…