Before implementing a franchise program, a company should evaluate itself on several criteria. An important consideration is the success of the initial or pilot operation. If the products or services offered have found reasonable acceptability and if these products or services are readily adapted to other areas, then the market potential for the franchise may be good.
Does the company have a marketing niche that can be used to its advantage? It the business similar to many others in a crowded business segment and, if so, is there a targeted customer bases so that advertising and selling can be focused effectively?