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Franchise Development and Implementation

Not every business can or should start a franchise program. Developing a successful franchise may not always be feasible.

In some instances, a business may generate good returns but, after deducting the franchisor’s royalty, that return may be inadequate in the eyes of prospective franchisees.  In other instances, a business may be successful for reasons that may be difficult to duplicate. And, of course, a business will need to sell franchises.

Even if a business can be franchised, it does not mean that it should be franchised.  An assessment of the franchise option should properly account for how franchising fits the needs of ownership or shareholders.  It should also take into account whether or not there are other alternatives that should be considered.  Of course, the best solution for your company may be a combination of two or more of these alternatives.  And, in fact, most franchisors will also grow through other channels of distribution as well.

For information on how we can help you assess your potential as a franchisor, please Contact Us for a no obligation initial consultation.

Franchise Feasibility

While it is impossible to determine if a business can be franchised without a significant amount of analysis, Eagle Franchising and Business Services uses some or all of the measure below in that determination.

Credibility: To sell franchises, a company must first be credible in the eyes of its prospective franchisees.

Differentiation: In addition to credibility, a franchise organization must be adequately differentiated from its franchised competitors.

Transferability of knowledge: The next criterion is the ability to teach a system to others. To franchise, a business must generally be able to thoroughly educate a prospective franchisee in a relatively short period of time.

Adaptability: Next, measure how well a concept can be adapted from one market to the next.

Refined and successful prototype operations: A refined prototype is necessary to demonstrate that the system is proven, and is generally instrumental in the training of franchisees. The prototype also acts as a testing.

Documented systems: All successful businesses have systems. But in order to be A franchise success, these systems must be documented in a manner that communicates them effectively to franchisees.


Return on investment: A franchised business must, of course, be profitable. But more than that, a franchised business must allow enough profit after a royalty for the franchisees to earn an adequate return on their investment of time and money.

Capital: While franchising is a low-cost means of expanding a business, it is not a “no cost” means of expansion. A franchisor needs the capital and resources to implement a franchise program.

Commitment to relationships: Successful franchisors focus on building long-term relationships with their franchisees that are mutually rewarding.

Strength of management: Finally, the single most important aspect contributing to the success of any franchise program is the strength of its management. The most common contributor to the failure of start-up franchisors is understaffing or a lack of experience at the management level.

For those franchisors unable to achieve their growth plans, Eagle Franchising and Business Services often recommends that the process begin with a strategic audit. Eagle Franchising and Business Services can audit specific elements of the franchise program or conduct a complete assessment of the franchise organization. The end result of any audit is a written report with specific recommended action steps that the franchisor should undertake in each audited area.

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