The role of the Franchise Feasibility Report, or the Franchise Analysis, is to study the business and its market, and identify what modifications may be required to ensure its smooth transfer to a franchise concept... in other words is it franchisable? Many companies will advocate an extensive analysis, report, and presentation charging around £5000 for this alone, but essentially there are a few questions to ask which will determine, in principle, whether or not your business is franchisable.
- Is the business profitable?
- Has the business been successful for more than a year?
- Can Franchisees recover their initial investment quickly?
- Can the model be taught to others?
- Can the business be duplicated in other areas?
- Do you have funds to finance the franchise development?
- Do you have the management resource in place to develop the franchise?