Step 2: Determining when you are ready to franchise your business
The second stage in considering whether your business is ready to franchise is to understand the market for your products or services and whether you are in a position to consider franchise growth:
#2. Your business needs to work anywhere in the country.
This means that the business should have a stable and reliable potential customer base and market both locally and nationally.
A fresh lobster business in Maine would do very well in that local market. Not only do customers who live in that area of the country enjoy and seek out fresh lobster, tourists also look for places to get the best Maine lobster when they’re on vacation. However, it would be nearly impossible to reproduce fresh Maine lobster in Missouri and no one would be looking for your product in that part of the country if you could.
In order for a business model to be easily franchised, the product or service should be something that is universally wanted or needed. McDonalds is a great example of this concept. Throughout the United States, as well as in many places around the world, people enjoy and regularly purchase hamburgers and French fries. Customers seek out their product regardless of their location.
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