Is My Business Model Franchisable?
Not every profitable business can be franchised. A viable franchise requires strong margins, unique advantages, and sustainable value for franchisees—beyond short-term gains—to ensure mutual growth and long-term brand success.
There is a deep-rooted belief that practically any business model can be franchised because "if it works for me, why shouldn't it work for others"!
And while this axiom has some truth to it, it is also true that the matter is much more complex!
In fact, to define franchising in a few (very few) words, we could say that it is simply the "reiteration of a success".
That reminds me of my days at Subway where some franchisees said that Fred Deluca, the founder of the company, had really only had one good idea in his life and then repeated it more than 40,000 times!
But back to the subject that interests us here, what are the main criteria to be considered to determine if a business is Franchisable?
I do not want to get here into analyzing the 3 necessary and well-known elements for a business to be considered a franchise, but rather look at the economic aspects.
Nor do I want to go into how to analyze and model a business to determine the right level of Royalty, Product margin or marketing; that would be the subject of another Post as we too often hear things like:
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