In theory, any business can become a franchise. However, not all activities are ideal to be developed under this model, so a good diagnostic is the first step, to check the viability of the model in each particular business activity.
In his article in Prensalibre.com, José Fernández points out 4 key aspects when analyzing the feasibility of a franchise:
1. Franchising should be good business both for the franchisor as the operator: In few business models "win-win" is as important as in this one.
2. Easily reproducible business: Even though the premise of a franchise is reproduction and standardization, there must be room for adaptating to the circumstances of each market.
3. Business know-how must be systematically transmissible: Methods and procedures must be easily packed, to efficiently train the operator.
4. It must be a competitive investment: A franchise is an additional investment option, which must compete with all other options in the market.
Source: prensalibre.com
More on this topic
June 2009
When viewing an opportunity to expand a business, it is necessary to analyze which of these options is best to get it accomplished.
One of the key aspects is financial. Franchises usually require a higher investment in the beginning, but once they are granted, they will have marginal costs that are lower each time.
April 2010
If a business is successful somewhere else, it doesn’t mean it will be automatically successful in our market.
Studying consumption trends in more developed countries is a good source of potential business opportunities. If a product or service is selling well and being profitable in a country, it is likely to be successful in another.
September 2010
Creating a successful franchise is the dream of many businesses but it is not an easy process.
Essential parts to the conceptualization and implementation of a franchise development plan:
Clearly defined business concept
- What exactly is being sold to future investors
A strong and attractive image
April 2009
Musmanni Corporation will franchise its two current cafés and plans to continue growing through the franchise model.
The company has plans to franchise its two café operations called MusCafé for 2009. The projected growth under the franchise model is for 2010.
The Elfinanciero.com website published: "According to [Mónica] Bianchini [Product Manager for the Musmanni International Corporation] the growth model through franchising will be supported by Musmanni, which has experience in this system of expansion and therefore considers that it will be successful."
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