We have come across franchisers with nothing else to offer the franchise applicants but a franchise agreement. While this is an important document in franchising, it is only one of the many components of the franchise system. You have to put a number of things in place before you open your doors to franchising.
Below are several of the questions you must answer before you entertain any franchise inquiry:
QUESTION 1: What is your franchise business model? How would you know if the franchisee would make money or not?
QUESTION 2: What is your value proposition to the market?
QUESTION 3: What are your reasons for franchising the business?
QUESTION 4: What are your short- and long-term goals?
QUESTION 5: Who will be involved in franchising?
QUESTION 6: What are the franchise fees and royalties, its breakdown and computations?
QUESTION 7: What are the phases of the application process and the rationalization of each phase?
QUESTION 8: How will you evaluate franchise applicants?
QUESTION 9: What franchise organization will you set up?
QUESTION 10: What support and assistance will you provide prior to opening and while the franchise is operational?