Retailink: Criteria of Franchisability

Criteria of Franchisability

A. Quantitative Review

NOTE: All questions should be answered

1.The Productivity/Service Concept

	Poor	Fair	Good	Excellent
a. Rate the originality of the concept.
b. Rate the potential for accurately duplicating the Concept across the country.
c. Rate the length of the product's/service's life cycle
d. Rate the quality of product /service
e. Rate the market appeal of the concept.
f. Rate the growth potential for the system over 10 years
g. Rate the ability to standardize the system's operation across the country

2. The Franchisor

	Poor	Fair	Good	Excellent
a. Rate the quality of management in place.
b. Rate the quality of internal operation and control systems in place
c. Rate the training programs in place
d. Rate the franchisor's ability to train potential franchisees.

3. Competition

	Poor	Fair	Good	Excellent
a. Rate the level of competition.
b. Rate the competitions reputation.
c. Rate the competitions success rate.
d. Rate the ease by which employees could duplicate the system.
e. Rate the quality of the competitions financial resources.

4. Financial

	Poor	Fair	Good	Excellent
a. Base on actual or pro forma results, rate the profitability of the operation.
b. Rate the return on investment from the franchisor's point of view.
c. Rate the return on investment from the franchisee's point of view.
d. Rate the franchisor's ability to adequately finance the start-up coast of the system.

B. Analysis of Quantitative Review

Total Score	Analysis
65-80	High probability for success as a franchise system
50-64	Reasonable probability of success as a franchise system
35-49	Franchising potential, but major issues must be addressed
less that 35	Extremely limited potential to succeed as a franchise system
Score

For further information or some qualative information on your
score, please call us for a free consultation.

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