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