How to tell if a business is ready to franchise

There are many factors to take into consideration before a business owner expands into a franchise. Financial, legal and administrative matters must be taken into consideration to make sure that the person is equipped to handle the challenge of starting a new kind of business that operates on a different model. Before any of those other concerns can be addressed, however, business owners need to first decide if their company is even equipped to become a franchise. 

How to tell a business could be a franchise
According to Entrepreneur, to determine if a business has the staying power to become a successful franchise it needs to be marketable and cloneable. When determining if a business is marketable enough to gain investors, it needs to have a unique angle or draw that makes it stand out from competitors. What would customers get from this establishment that they can't get anywhere else? Before pursing a franchise opportunity, a business owner needs to determine what his unique marketable factor is. 

To determine if a business is cloneable or not, the owner needs to establish what it would take for another person to replicate its operations. Ideally, a cloneable business should take less than three months for an average person to learn to operate. All the details of running the business need to be well-documented and easy to understand so that people can buy and run their own part of the franchise. 

Business owners need to document their management and marketing plans to determine if it can be franchised. Business owners need to document their management and marketing plans to determine if their company can be franchised.

Conducting franchising analysis 
To find out if a business meets the qualifications for starting as a franchise, the Houston Chronicle recommends business owners conduct a thorough business analysis to determine if they are making enough of a profit to justify the expansion. 

If it is, the next steps would be to draw up the operations guidelines and a marketing plan. Having these manuals prepared will help show investors that the business has the potential to grow as a successful franchise. 

Equipment and franchise industry piece brought to you by Marlin Equipment Finance, a nationwide provider of commercial lending solutions for small and mid-size businesses. Marlin's equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which include manufacturers, distributors, independent dealers and brokers in the security, food services, healthcare, information technology, office technology and telecommunications sectors.