Franchise readiness: calculate the profitability of a franchise unit

A profitable business does not automatically mean a profitable franchise unit. The founder’s own work, long-standing customer relationships and favourable contracts can produce results that a new franchisee cannot replicate. Before expanding your business into a franchise network, you need a financial forecast that shows how the business would perform from a new franchisee’s perspective. The aim is not to make an attractive earnings promise, but to reach a well-founded decision on whether the concept can cover the costs of an independent business owner.