Certain factors are present again and again in businesses that succeed in franchising. Although no company should expect to have all of these factors, the more you possess, the greater your chances of success. If your industry is relatively untouched by centralized decision making, and is the domain of small, independent operators, then you have a distinct advantage. Simplicity of Concept In franchising, novices must quickly learn to operate an unfamiliar business system. The easier that system is to learn and implement, the better the odds for both franchisor and franchisee success.
Franchisees require one thing above all else - the ability to make money.
These are basic questions in the franchise success formula. The initial investment requirements must be reasonable in order not to strap new franchisees for working capital. Remember, franchisees have to finance the business start-up plus a few months' expenses while the business is getting established. The franchisee's initial investment must be reasonable in light of the necessities of the business and its profit potential. A Service Business Service businesses offer franchisors many advantages that businesses in other sectors of the economy do not possess.