Franchising allows smaller companies to effectively compete with larger competitors. As a growth strategy, franchising provides you with the ability to gain market share and increase your points of distribution (number of franchise units).
Starting A Franchise Is One Of The Most Exciting And Yet Difficult Things A Person Can Do.
Should you jump in before someone else beats you to it?
Before you start working toward your dream, you should consider if your business would work best as a franchise. Not every business concept would make a good franchise system. As well, setting up a franchise is a long-term endeavor and one that involves a lot of people, as well as their hard-earned cash.
You want to be a responsible franchisor, not just a franchisor. A franchisor has ethical, moral and legal responsibilities to the potential franchisee. You are asking people to risk what they have acquired over time. The franchisor’s responsibility in the relationship is to offer: a sound business concept and operating system; capital to grow the business; a marketing plan; a strategic plan to grow the brand; complete training and support in running the business; a plan to anticipate and increase growth within a targeted market; and a culture that franchisees can respect.
The franchisee’s responsibility is to operate the business according to the franchisor’s standards, find and work with customers, and supply capital to the franchisor in the form of initial franchise fees and ongoing royalty payments.
Building A Successful Franchise System And Becoming A Successful Franchisor
To franchise or not often depends on where your business is at the time. Certain steps are necessary and must be put in place to protect ones self. Essentially, a franchisor needs an original business concept with a support system that builds the business. The franchisor sells agreements to people to develop the brand, and these franchisees use this system to acquire and keep customers. This seems rather simple until you consider all that goes into the franchising way of doing business.
Some of the elements a franchisor must have in place to be successful are:
- An original business concept that can be duplicated and create standard results across all franchise units.
- A broad geographical appeal.
- A broad market appeal.
- A well-prepared business plan possibly put together with the help of a franchise consultant.
- Legal documents and registration-clearing the legal hurdles.
- Franchisee recruitment and screening process-develop a franchisee profile.
- Identify a growing market and develop a sales plan.
- Market share-dominating a specific market is the goal of any franchisor.
- Adequate capital to develop your business infrastructure and carry the business until it begins generating revenue.
- A highly developed training and support program.
- Research and development to anticipate your client’s needs.
- Unit profitability. Be concerned the economics are enough to cover your expenses but not so high that your franchisees cannot stay in business.
- Management structure that will develop and implement strategies; be an inspiration to franchisees; and satisfy investors.
- Identify franchise territories and assign franchise units.
- Supplier and Vendor relationships create standards.
- Equipment for each unit.
- Field support staff — the eyes and ears that identify and defuse problems with franchisees.
- Ethical culture and decisions that franchisees can respect.
- A franchisor needs a strong business infrastructure as well as a clear concept before signing a franchise agreement with its first franchisee.
Article Source: http://EzineArticles.com/2395500
Profile Links
https://www.mvagusta.net/members/qweqwasd.118267/#about
https://www.metal-archives.com/users/asdfgh123
https://www.mvagusta.net/members/qweqwasd.118267/#about
http://www.effecthub.com/user/1876738
https://www.gromforum.com/members/zxcqwe12.55079/#about
http://demo.fxjunction.com/profile/qwerty
https://forums.huduser.gov/forum/user-90443.html
https://speakerdeck.com/qwertyasd
https://my.desktopnexus.com/qqweasd/
http://www.groovyfreeads.com/user/profile/362444
https://cliqafriq.com/qwezxc
https://experiment.com/users/qqweert
https://www.newninja.com/members/qwerasd.49799/#about
https://network.changemakers.com/profiles/xew89947
https://peatix.com/user/7558601/view
https://www.mdxers.org/members/qwezxc123.207364/#about
https://www.tsxclub.com/members/qwezxc.187181/#about
https://www.ninetowners.com/members/asdqwezxc.70120/#about
https://www.infinitiqx60.org/members/qwedad.35040/#about
https://www.audiq3forum.com/members/qwezxc.24686/#about
https://www.astonmartinlife.com/members/qwezxcasad.19647/#about
https://www.tlxforums.com/members/qwezxc.40720/#about
https://www.sbnation.com/users/QWEASD123
https://www.a5oc.com/members/qweasd.131105/#about
https://slides.com/sdasdqwe
https://doodleordie.com/profile/qwert12
https://www.instapaper.com/p/8781152
https://www.bonanza.com/users/48059435/profile
https://www.atlasobscura.com/users/wjv84285
https://cycling74.com/author/603a1e1a4cf2ee6cb636f5f2
https://www.dieselramforum.com/members/qwezxc.30603/#about
https://www.kiva.org/lender/qweasd4280
https://www.creativelive.com/student/qweasd-qwed?via=accounts-freeform_2
https://www.viki.com/users/lss94822_633/about
https://visual.ly/users/lss94822/portfolio
https://dzone.com/users/4518802/qweasdqe.html
https://list.ly/lss94822/lists
https://vbscan.fisica.unimib.it/qweas
https://www.flicks.co.nz/member/pjy193554054/dashboard/
https://cafebabel.com/en/profile/anonymous-603a240ef723b355dd2bafdf/
https://giphy.com/channel/asfqwe
https://www.sostronk.com/user/zxcasd
https://www.ethicalhacker.net/members/asas/profile/
https://www.ethicalhacker.net/members/asas/profile/
https://audiomack.com/qwesasd/about
https://www.iniuria.us/forum/member.php?215331-qweads
https://www.youmagine.com/qwesad/designs