If you have a company that has proven to be successful, especially if you’ve got a retail site, chances are that customers have asked you, “Are you a franchise?” And when you say no – that you have the company independently, then they promptly state that they would be interested in buying it if you were franchising.
That’s frequently the first step toward a new franchise company – that the “Ah-HA” minute. Regrettably, that first step frequently can cause the end of a successful business enterprise. Listening to non-business owners is flattering, but not beneficial.
The next thing the flattered business owner does is to seek out information on franchising – sometimes from the world wide web, but often through a lawyer. (Not particularly from a franchise attorney of course, because now the owner does not know how much he/she doesn’t know.)
What the owner actually wants is a dose of reality by a franchise consultant (sometimes called a franchise developer) with ethics. I highlight “with ethics” because requesting information from an attorney or consultant who stands to make money by stating, “Yes, you ought to become a franchise…” can begin a good company down the wrong (and quite expensive) path. If you would like to see more guidelines what to look in Web Site Service (which is also known as “Webサイト制作” in the Japanese language )see them all online.
The owner Has to Be asked some Challenging questions from the franchise consultant:
* Are you really making money?
* Can your brand new franchisees earn at least $35-40,000 their first year in business? (If they can’t get enough to help cover their house expenditures, they will be unhappy, which hurts or kills future sales of their franchise.)
* Do you have the funds to continue for 3-4 years till you’ve got a vital mass of franchisees in place who cover sufficient royalties to start covering all of your service costs? You are going to invest $100,000 or more in the first year or two to begin franchising – can you manage it?
* Do you want to work hard for at least 4-5 or more years to construct a far larger company? * Are you a good leader and team builder?
When the answer to all these questions is yes, then the very first step the franchise consultant takes is to calculate financial projections to determine whether the corporation will make money and how much it will cost to set the wheels in motion.