Phil Town, author of “Rule #1,” and I answered several viewer questions on franchising, adjusting prices, and advertising on MSNBC’s Your Business.
While you can watch the whole clip, here is the answer about franchising and what you should be aware of:
Q. I’m interested in franchising, what are some of the steps to do that?
- Franchising can sound like a dream come true with hundreds of franchisees paying your for the concept you pioneered but first you must have a profitable business in a couple locations to prove it works and scales well. Having a single location that is successful is great, but it isn’t really proof that your system works. Even after opening a second location in the same town, it is not proof that you could open one say in Des Moines, IA or Nashville, TN and meet with that same success. That’s because your exisiting customers in your original trade area are making you successful. Continue reading Should You Franchise Your Business? »