Franchising is a duplicate model that gives open opportunities to expand business outwards. Which means your business crosses its boundaries and is reachable to larger audience. While franchise opens whole new world for established brand name but there are number of variables to be taken into consideration especially when you as a franchisor takes the plague and decide to franchise your business.
Do not give a green signal to franchise your business if it’s sinking or the sales have gone down. If your business is earning low revenue franchising is not going to turn its fate and turn around the sales figure. Deeply study the core issues and focus on improving the revenue.
It’s not easy to duplicate the business concept smoothly. The success of any business largely depends on the simplicity of its concept. People, who invest in the business need to learn quickly, understand well and replicate the business model. For example, if some brand restaurant relies on a certain dish that can be found in a small city and is impossible to mass produce then it is a serious issue as the brand plans to expand outwards.
Franchising is stressful it’s not an easy transition especially if you are planning to head towards retirement. Blindly trusting just any one as a franchisee with the business idea you have worked hard to make it a success is real scary and is not easy to sail smoothly. As a franchisor you are always there to support and make all the possible efforts that can make new franchise successful.
Franchise is a lengthy process and is expensive too. With the consultant fees, trade marking, accounting fees, operational fees, starting a franchisee accounts in lakhs of rupees and months of documentation preparation it’s no smooth morning walk in the park.
Always expect the unexpected. Mastering the franchise sector is a completely ball game, it’s simply a nuance. You might be sure of your business idea and that you have enough capital to invest, but its difficult to stand apart among hundreds of brand name, the competition is tough if you want to stand out with a sign board “franchise”. It all starts with an experienced sales team but always remember it’s a real slow curve moving upward.
Be ready to take risk. Throughout you have done all the hard work to make your family business a brand success that you are proud of? You have gave years into developing a business concept that you have mastered well and established successfully in your area and feels the time is just right to move it outward through franchise. Spreading your dream project with your name is risky and one rouge franchise can spoil the brand image past a point it become impossible to repair.
Franchise has a tough nature and it not suits well to everyone. It involves different kind of relationship infact the whole concept is all about relationship.