Is Your Business Franchise-able?
United Franchise Group’s Franchise Services Division Offers Franchising Tips for Entrepreneurs
WEST PALM BEACH, Fla. – (Nov. 10, 2009) – Dreaming of becoming a franchisor? Tony Foley, president of the franchise services division of United Franchise Group (http://www.ufgservices.com) has advice for entrepreneurs wondering whether their business is franchise-worthy.
“Despite an owner’s hopes and dreams, not every good business can become a successful franchise operation,” says Foley. “The business concept must have certain critical elements to translate well into franchising.”
UFG’s services division provides a “continuum” of services designed to help entrepreneurs grow their businesses from a single unit into successful domestic and/or global brands. Foley offers the following tips to help owners determine whether their business has the potential to become a franchise operation:
- Assess your profitability. Has the business proven to be successful on a local basis? If it’s not profitable, why would anyone buy it as a franchise?
- Consider whether your business is teachable. Can someone else with no experience in this industry easily learn to run your business? A complicated and specialized product may be too difficult to pass on to others to replicate.
- Remember location matters. Can the business be located in a strip shopping plaza in Anytown U.S.A.? Franchises that only work in an enclosed mall setting, or expensive custom-built, free-standing buildings aren’t always successful.
- Think about tools of the trade. What kind of equipment is involved in the business? Is it expensive and hard to find?
- An original idea is not required. Having a unique element is important but the concept doesn’t have to be new. Food is king in franchising. Even though it seems there’s a new pizza joint popping up daily, there will always be demand for pizza and many of these franchises will continue to be successful.
- Don’t shy away from home-based concepts. Although these franchises are often more likely to be successful because of the low overhead and cost of entry, you may encounter challenges selling prospective franchisees on the concept since they can’t touch and feel the business.
- Get consultation. It’s a bold jump to take a local business to the franchise level. Look for third-party consultants who will provide honest advice to help you determine upfront if your concept is even franchise-able.
- If you have a dream, follow it. Some of the best franchise concepts were born from personal need. The moving franchise, Two Men And A Truck, was born when a Michigan woman thought there should be an easier way to move her son to college.
“While 30 years of experience tells us that these are tried and true tests, we can’t guarantee everyone who follows our advice will be a successful franchisor,” says Foley. “The industry is evolving. Today, we’re seeing more and more female entrepreneurs make it big with a great idea and a smart business plan.”
For more information about United Franchise Group Services, please visit www.ufgservices.com.
Source: United Franchise Group, www.ufgservices.com
