We have a small business that we think would make a good franchise. It is a small gift store specializing in limoges. How do you know if you idea is franchisable? Any help would be appreciated. Thanks.

It is not that difficult if you have all the training, procedures and processes in place. However, most small businesses do not. This is what takes the most time because you have to simplify your operation and put a system in place that others will be able to follow.

It really depends what type of franchise you are considering it is a lot easier to establish a franchise and market one if there is a similar concept out there. For example if you were to start a new fast food restaraunt you can look at the UFOCs, advertising etc of the existing businesses to get ideas. Then you can modify them for your franchise. If your concept is new it is going to be a lot more difficult - but potentially more profitable.

Limoges are already available online and through retail outlets. As a prospective Franchisee you have to ask yourself the same question that they will be asking you - Why should I pay a royalty fee to you when I can start my own store?

-Do you have exclusive distribution rights?
-Do you have a new way of distributing them?
-Do you have an exclusive supplier?

If you do not have a unique value proposition you may not be very successful

I agree with Small Business Consultant although I would add

It needs to be credible. Does your company have experienced management? A track-record over time? Is the concept proven? Have you achieved good local press or public acclaim?

It needs to be teachable. Are the systems in place? Are operating procedures documented? Could someone learn to operate your business in three months or less?

It needs to provide an adequate return. I don't mean just profitability. If a business can't generate a 15 to 20 percent return on investment after deducting a royalty (typically between 4 and 8 percent), it's going to have difficulty keeping franchisees happy.