All the businesses before taking up any new projects will assess the risks and do their investment rightly. It also goes well with Franchising as well. Hence, it is always advisable to evaluate your business before franchising. Take a step-by-step approach according to the Franchise Evaluation Checklist. Basically, there are four major types of a franchise that you may consider for franchising your business.
- Product and Trade Name Franchising
- Manufacturer – Wholesaler
- Business Format Franchising
- Wholesaler – retailer
- Retailer – retailer
After having a fair understanding of the above models, do a proper research especially check with the research reports from reputed consultants, Government agencies, Primary research, and secondary research companies. Later do financial planning and arrive at approximate estimates.
What products or services will be franchised should be clearly understood in this stage. The quality and price of the products and services supplied by the franchisors. So, evaluate the model according to the suppliers. Evaluate the sales territory and finalize the location. Finally, prepare the legal contracts. Sparkleminds has been providing advisory services to its clients in implementing end to end franchise strategy. Check our new franchise business checklist and develop a plan that best fits your skills, experience, investment levels, and lifestyle.