For thriving business owners in sales and service industries, franchising is often considered a way to grow. Research through academic research has seldom provided business owners with a way to analyze whether or not to take the plunge into starting a franchise.
Ask Mr. Franchise provides research analysis to help you make a decision as to whether or not to expand to a franchise. Franchisors will have to make decisions regarding the formation of a business model that includes but is not limited to; locations, finances, production, pricing of products and services, hours of operation, size of staff, training, marketing, licensing, branding, logos, trademarks and more that will become standard practices for successful franchising. As a franchisor, you will be rewarded a percentage of franchises in royalties.
Ask Mr. Franchise provides research analysis to help you make an informed decision
In some was franchising can be looked at as method for diversifying a portfolio. See benefits of franchising here. Typically diversifying a portfolio would be done to eliminate risk. So when analyzing whether or not to franchise the first thing you have to consider is how will franchising diversify your business. To come to this conclusion as a business owner you can ask yourself is your business likely to be as successful in another location, will adding a second location pick up the slack of downtimes at the original location? Let’s take a look at how this could be possible. For this analysis lets consider a franchise that is a retail store. Lets call the original store location store 1 and the first franchise location, store 2. If sales were to slow down in store 1 will they also slow down in store 2 or will they be.