5 Questions to Ask Before You Franchise Your Business

The Franchise Scale Up Show with Guy Coffey

Franchising can multiply your brand—but only if you’re truly ready. Move too soon, and you’ll burn equity, fail franchisees, and risk collapse. In this episode, I share the five critical questions every founder must answer before franchising their business.

From testing your concept in multiple markets, to ensuring strong unit economics, to preparing yourself for the franchisor role—these questions are the difference between a brand that scales and one that stalls.

Key Takeaways:

• Market demand: If it only works in your hometown, it may not travel
  
• Unit economics: Franchisees buy profits, not potential
  
• Systems: Your business must work without you in it
  
• Founder role: Your job shifts from operator to franchisor
  
• Capital: You’ll need 18–24 months of runway before royalties sustain you

Timestamps:
00:00 Introduction: The Risks of Franchising Too Soon

00:17 Welcome to the Franchise Scallop Show

00:48 Question 1: Market Demand

01:32 Question 2: Unit Economics

02:39 Question 3: Systems and Processes

03:26 Question 4: The Founder Role

05:07 Question 5: Capital and Timeline

07:21 Key Takeaways and Conclusion

07:54 Final Thoughts and Call to Action

Franchising takes strategy, not guesswork. Before you take the leap, answer these five questions honestly.

If you want to go deeper—whether it’s building infrastructure, accelerating sales, or preparing for private equity—visit guycoffey.com and book a free franchise growth strategy call. I only partner with founders who are serious about scaling smart and protecting their vision.

Connect with Guy Coffey:
LinkedIn: www.linkedin.com/in/guycoffey
Website: www.guycoffey.com
Instagram: @guycoffey
YouTube: @guycoffey