Once upon a time, John Doe opened a small business. In this case, let’s pretend it’s a hot wings joint with a killer salad bar. Why these two? Because John figured that if men liked hot wings and women liked salads, he’d get 100% of the available customers. He named the joint Killer Wing Greens. Guess what? It worked. Like a charm. Before long, the restaurant grew in popularity. Lines stretched around the block on game nights. Men brought their wives. Boyfriends brought their girlfriends. They ate. They laughed. They lingered. John Doe added a network trivia game and the place got even more popular. Now, reservations were suggested for the weekends.
Everyone who knew John Doe kept telling him to open up another location across town. He was unsure. Things were going well and he didn’t want to chance a setback. But before long, it became obvious he couldn’t lose. He found a spot a few zip codes over and opened a second location almost a year to the day he opened the doors to his first location. No sad story here—the second location became a customer magnet too.
Then, some of John’s friends really started to bend his ear. A lawyer friend told him he should look into franchising his locations across the state. Instead of two locations in one city, he should aim for 15 locations statewide. Now the stakes were really high. Killer Wing Greens was a knockout success. But on a local level. What guarantee would there be if he franchised his signature restaurants? For the purpose of this exercise, you just became John Doe. And you own two Killer Wing Greens locations. Your smart friends are telling you to franchise.
What do you do?
Thankfully, we have a small checklist to go over with you and your restaurants. So, you want to franchise your business? Let’s look at these points first:
Is Your Business Really a Thing?
If you own a pizza parlor, you have a lot of competition. Is there anything specifically unique about your product and/or the way you sell it to the public? Tossing dough in a storefront window and selling by the slice is common. Using all organic ingredients and delivering via ride-share isn’t. See the difference? We think John Doe is sitting on a goldmine because he designed his quick-service restaurants to appeal to men and women at the same time. On the same date night. Make sure your business has a hook.
Can You, Yourself, Transition?
Maybe John Doe loves creating the sauce that goes on his hot wings. Or perhaps he really enjoys going to the local farmer’s market to get the freshest greens and vegetables for his salad bar. But if John Doe does decide to franchise Killer Wing Greens, he may have to give all that up to sit behind a desk in an office somewhere. When you go the franchising route, there’s a good chance you may give up what you truly love about the business you created. Will you still be happy? Better do some serious soul-searching…
Get a Good Travel Guide
John Doe is a restaurant guy. Loves tomatoes, doesn’t know much about banking. Loves chicken wing sauce, but he isn’t a lawyer. If you do decide that franchising is the route for your unique business, you had better ring up some qualified assistance. You’ll be dealing with state and local laws on franchising. You’ll be dealing with bankers and financiers. If you can read a balance sheet, but not much more, it’s time to bring in the cavalry to get you to the promised land. Nobody can do it alone.
We hope this has been an inspiring example of how one successful business gets to the brink of making a critical decision to franchise. Hundreds and thousands of concepts have come before them. Some have gone on to great success, while others floundered. If you have a business that is successful and you feel ready to take the next big step, be diligent and patient. If the concept is right, you may be sitting on a winner.
Just like John Doe and Killer Wing Greens.
As a franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution for determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes a predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2017.