How should you look for the right franchise system?
The market assessment helps you to assess the chances of success of a franchise system. You should look at this question in detail independent of the statements given by the franchise company. For: the better you know your market, the easier it will be for you to make the decision whether to join a franchise system or not.
- How do you see the economic development of the branch?
- What effect will changes in the framework conditions have on the branch?
- What is the competition like in the branch?
- What position does the franchise system have on the market?
- What competitive advantages does the franchisor have over the other competitors?
- Who are the main competitors and how do you see their strengths/weaknesses?
- Which new competitors might enter the market?
- What dangers is the franchisor’s market position exposed to?
Product / Services
- How do the franchisor’s products/services differ from those of the competitors?
- What are the qualities of the products/services?
- Do these qualities correspond to market requirements?
- Is there a good price/performance ratio?
- What is the expected life span of the product?
- How often can the product/service be used?
- What is the price ratio in comparison to that of the competitors?
- From which companies can the products be acquired?
- Are the products delivered quickly and flexibly?
- What costs are required to market the product/service?
- Can the range of products/services be expanded by introducing diversified products or additional services?
- Is there a danger of the business creating a bandwagon effect if it is successful?
- Is it possible to completely determine and limit the target group?
- How is the target group made up?
- Is the success dependent on a few large customers?
- Does the target group need these requirements indefinitely?
- What marketing activities are required to convince the target group?
- Which media forms are especially suitable to reach the target group?
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