Not all entrepreneurs should go down the path toward franchising their business, Gunster attorney David Bates says recently in The Business Journals.
The skill set needed to excel as a franchisor, he says, is vastly different than that required to be a successful owner/operator of a restaurant, for example.
Bates goes on to describe six conditions that should be met before seeking to franchise your business, including understanding that what makes your business great may not be so easily replicated. For example, if a company’s success depends on location, a large customer base built over time, and/or such intangibles as a founder’s charm or personality can be very difficult to reproduce – making the business ill-suited for franchising.
Business owners should also take into account the likely amount of potential franchisees in an area, and whether a business’ profits are consistent over time.
Read Bates’ entire article: 6 things to consider before you franchise your business (The Business Journals, 8/26/16)