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Below are certain basic characteristics that must be met by the business organizations to take on the franchise route:
- Almost every business can be franchised and its presence can be enjoyed everywhere. The franchise business is without any doubt an incredible method to extend your business. It encourages you to cover an entire country under the umbrella of your brand. To influence a franchise business to work, it is vital for both the franchisor and the franchise to assemble a solid business connection.
- A business that has the potential to be sold as a franchise opportunity usually have the characteristics such as an established business, its unique selling proposition, teaching ability, and the promise of an adequate return on the investment.
- Opting for the franchise model in spreading out the presence of your business across the state or nation, you have to check the following features in your business.
Investigate your Credibility
Your business has to be credible, in a sense that you should have an experienced management. Your company must hold a good track record and a proven business philosophy. Acclamation from your customers or the local press is also necessary to move ahead in franchising.
Uniqueness
For expanding a business through franchising, you should come up with something refreshing and unique. There are already a number of players in the market and competition could be cutting-edge, so you have to be adept at amplifying the USP of your business to gain a competitive advantage. Your business should be marketable as a business opportunity.
A Teachable Business
Yes, your business philosophy should be teachable. It means you should be able to make your franchisees learn the same tactics and techniques in a limited period of time to operate their units successfully. This is possible only if you have well documented operating procedures.
Be in the Profit Zone
It is the most important aspect of a franchise business. If your business cannot generate 15- 20 per cent return on investment after deducting the monthly overheads and royalties, then it will be difficult to keep your franchisees with you on a long term relation.
Well, at the end of it, if your business has all these characteristics,do not waste time and go ahead and spread across the nation.
