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Home  Franchise Guidance   Typical Characteristics Of A Company That May Not Be Suitable For Franchising

Typical Characteristics Of A Company That May Not Be Suitable For Franchising

If your business exhibits one or more of the following characteristics, you may wish to address these before embarking on a franchising strategy.

  • A product or service which is likely only to have a short term market
  • A business that addresses a small niche market that only exists in a limited geographic area
  • A business that returns low gross margins
  • A “personality based” business that relies on customer loyalty to the individual and not the brand
  • A business governed by regulatory issues and legislation that would pose challenges for franchisees
  • Attempting to operate as separate legal entities
  • A business thinking of a franchise model to address current business cashflow issues
  • A business which has limited capital and limited access to credit

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