Do Primary Research Before You Franchise
If you hope to launch a fast food store or an online store and turn it into a franchise, you must understand and know all the points mentioned in this book. However, you must maximize your knowledge of the market and business before that could be done. Like any other business, if you must have a great franchise network, you must deeply research the market.
Explore different topics related to the market and competitors to achieve information in that regard; study what is happening in the market; the people in the market; and how they provide services. To find out what is going on in your intended business guild, attempt to find the answers to the following questions: How attractive and marketable is your intended business?
How much can you plan on that business and rely on it? How productive can the activity in that business be? What is this business's size and capacity and how much are the transactions and financial exchanges in that business? Who are the customers of that business? Who are your competitors in that business? By explorations, determine the geographical scope of your activity.
Of course, in the franchise world, you should not despise your little beginning. Do not be afraid to enter the game from a smaller geographical scope, with time, you will grow little by little. In your investigations, divide the competitors into two parts: franchise businesses, which are your direct competitors, and independent businesses. In your intended area, the independent businesses: How do they work?
How successful are they? What market share do they have? What services do they provide and how? Consider and examine franchise competitors, too: What style do they have for their work? How do they accept the branch requests? What are their sales and trading methods? With what percentages and amounts do they work with the vendees in the branch sales? What is the approximate amount of their transactions?