Monday, 23 February 2015

Franchising-Ready to Run Business


As you are well aware by the term FRANCHISING, so by focusing on the topic we should move ahead.

Today I summarize some points which fall in our mind when we are going to opt for a franchisee for a new start up or a venture.

Before deciding on a Franchise Model, first of all we need to target franchise requisites:-
 Below is the diagrammatic response for the same.

Now after this, when one understands about the prerequisites of having franchising, another question comes why franchisee?

When you opt for a franchising route you need not to go through the initial problems of setting up a business from a scratch, because somebody else has already done the shovel works.

Thus your business is based on an idea that has already been translated in to reality and proved its success.
Brand equity is all important today. So if you take up the franchise of an established brand name, you derive the benefits of brand recognition, brand loyalty and the goodwill that the brand has built up.
You can also cash in on the success of the brand and its demand. You do not have to spend time, efforts and money in establishing and then building up a brand name.

Read more on Brand:- https://www.linkedin.com/pulse/20141203043502-377228179-hitting-offshore?trk=mp-reader-card

When you are going to opt for COFO Modal (Company owned Franchise operated Model), there are some dos and don’ts that need to follow:-
                           Dos
                    Don’ts
Understand the franchiser core principal & execute them well
Do not rush in to the Franchisee, until & unless you are sure you are ready
First try to focus on acquiring owned good location & if not then:-
Do not start without undergoing the initial training (Orientation Program)by the franchiser.

Negotiate hard on Lowering the rental, as it would have no controls in future

Do not under estimate the investment figure given by the franchiser.
Create a Per-forma P&L Statement to understand the revenue and cost figures.

Don’t assume that when you opt for a franchisee that the success is granted. There are no of factors that are responsible for the success & failure of a business.


Now in the end I like to, write a little about my Organisation.(www.cssrl.in)

According to us, Any Enthusiastic Entrepreneur are willing to have a franchisee or be the part of our Global Partnership Initiative, are privilege by never ending benefits, but to some degree that are much more important:-     
  •   Respect, Satisfaction and long term income streams are the benefits that franchisee   can enjoy.
  •  Good work habits and genuine efforts towards nurturing the relationship with our organisation help in creating a renewal business growth.


On my next post, I will publish the Important P’s while taking the franchise agreement.


As Always, all comments are welcome!!!

1 comment:

haroldwebbhere said...

As a franchisee, your job, first and foremost, is the sales and marketing of your product or service. Don’t wait for your franchisor to remind you—get your marketing out there all the time, analyze the effectiveness of each method and share effective techniques with your fellow franchisees. If you’re busy working on your computer or handling other administrative tasks over marketing initiatives, you are limiting your success.
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