When is the right time to consider franchising?

Sarah Stowe

There is no single statistic, timing or set of circumstances that will enable anyone to give a concise answer to this question. It depends on a number of key factors but asking yourself some of these questions is a starting point.

  • Does the business have a proven cash flow and profitability or are we at the idea phase?
  • Do we have a burning desire to build a larger business or do we want to stay the size we are now?
  • Is it becoming increasingly difficult to find the quality and quantity of people to continue to growth business?
  • Have we had any franchise enquiries that suggest people would be prepared to commit to this business?
  • Have we reached a cross roads in the business where a key decision needs to be made about the future direction of the business?
  • Are we ahead of the competition with our business and the consumer is suggesting we have growth options?
  • Do we have the necessary capital to develop the franchise system professionally or is it too early and we are undercapitalised?