Why
Franchising?
Why do companies Franchise?
For
a company with a product or service to sell, franchising provides
an excellent opportunity for rapid expansion without an enormous
outlay of capital. It is a distribution system that allows a
business to conserve capital, and at the same time achieve fast
market penetration making it a very attractive proposition to
most business owners.
One
of the greatest advantages to them is that they get 100% commitment
from their franchisees who have a stake in the business rather
than staff or managers who simply work for a salary and may
be less motivated. Franchising enables them to utilise the entrepeneurial
skills of the franchisee network to achieve better results than
might otherwise be achieved.
For
any company franchising their business it is important that
the business model has been carefully researched and refined.
It needs to be simple enough to be capable of being replicated
and the business system itself has to be clearly set out into
an operations manual that covers every aspect of the business.
The
Franchisor has to understand that this is is not a quick way
for him to make money, but a sensible way to expand and get
on board people that are equally committed to the business success.
Why should I consider franchising?
There are many individuals
who like yourself, who want to be their own boss. They see no
long range security in working for someone else, and feel that
their potential income will always be limited as an employee.
Franchising
offers these individuals an opportunity to break free &
own their own business whilst at the same time minimising the
risk that is inherent in opening an entirely new business from
scratch.
Franchising
allows you to follow a tried and tested business system which
will greatly improve your chances of success, as the statistics
prove.
Franchising
enables you to become involved as part of a company that has
established a tried and tested system and has achieved some
market share and name awareness. When starting a business as
a self employed person you will make mistakes which can be costly
if not catastropic. An established franchise will have ironed
out those problems. They will have a written system contained
within the franchise manuals as to how operate the business
so as to achieve maximum sales and profitability from day one.
It is effectively the name awareness and the system that you
are paying for.
One
of the most important aspects of becoming a franchisee is that
help is on hand at every stage. The Franchisor will provide
initial training, launch and marketing support and day to day
help. The fact that as a franchisee you are in business for
yourself but not by yourself is a major factor in the improved
success rate that is associated with franchising.
If
you decide to buy a franchise, do not relax and wait for the
Franchisor to do all the work, that simply won't happen. Franchising
can provide a structure and a proven system but it is still
your hard work and effort that will be decisive in making it
work.
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