A good business idea is simply that. In order for a business to be successful with franchising, the business will need to have a proven track record and at least be profitable and achieving a reasonable return on investment.

The first step to developing a franchise is to realise the concept by establishing the business and operating it for at least a few years. This way you will have a deep understanding of the business and will be better prepared to face any challenges that may arise once you franchise the business. Consider the proposition from a franchisees perspective. One of the primary elements a franchisee will consider is your experience in operating the business. If that experience doesn’t exist or is minimal, you may have difficulty attracting suitable franchisees.

What systems have you developed to pass on to the franchisee and how will those systems offer a competitive advantage as opposed to someone starting up an independent business? Can you leverage your brand and offer the franchisee an opportunity to take advantage of the goodwill associated with the branded network? Having suitable answers to these questions will be prudent before embarking on this growth strategy.