The Route To Your Success! 

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INTRODUCTION

More people and companies are considering franchising as a way of restructuring their operation with a view to more rapid and cost-effective growth. In this section we review the main advantages of franchising your business.

When people first approach us wanting to learn about our business regarding franchising, we first explain this is not any ordinary idea, Because we are franchising a proven business system with a track record.

Any business person that comes to work with us can be successful as we have a proven business methodology, meaning there is sufficient profitability and a demonstrable long term market. 

Secondly, we are asked about the advantages of franchising a proven system and brand. What follows should answer all your questions

Lower Over Heads.

Companies employing sales people for the distribution of their goods and services - whether vehicle or tele-sales based  - experience high overheads in wages, vehicles, stockholding, phone bills and central administration needed to monitor and control stocks etc. Generally, franchising makes the franchisees, as the owners of their own businesses responsible for their vehicles, calls and stock holdings etc. This enables the franchisor company (us) to dramatically slim down its structure and so become more efficient

Faster Expansion.

For a business requiring to expand, the franchise route can provide capital (received from the franchisees) for such expansion rather than increase overdrafts with every new outlet which opens on a managed basis. Such self financing enables a business concept to expand more rapidly than permitted by the financial constraints imposed by the more traditional methods. An increased number of businesses are adopting the franchise route as the best way to obtain national coverage and thereby access to winning national and international accounts.

More Stability.

Often management become frustrated by the high turnover of staff in whom much capital and time have been invested through training but who are not committed in any way to the company. The purchase of a franchise naturally brings the commitment factor, since franchisees become the owners of their own business - and become responsible for retraining personnel and the overall staffing costs.

Better Economics.

A small business has difficulty in getting the bargaining power to obtain good deals from manufacturers.          Greater turnover through a network of franchisees bring economies of scale which enables the franchiser to have much greater bargaining power, thus providing a pricing structure more favorable to all parties.

Better Service.

Frequently, business and private consumers suffer through lack of good service. In putting many more independent business owners in direct touch with the public, franchising helps to improve this factor, for committed local business owners are naturally more motivated to provide better service, which in the end is to everyone's advantage

Local Knowledge.

With corporate organizations, managers are often sent into new geographical areas to manage businesses where they have no local knowledge whatsoever. Franchising has the advantage of the business owners living in their local areas with established contacts and knowledge of local market conditions, Which can  therefore be more systematically exploited.

Home Base.  

The service factor is particularly suited to franchising. In many instances a service can satisfactorily be supplied by a franchisee from a home base. This is particularly suitable where the franchisee is a 2-person team involving one at home with the telephone and the other in the field providing the service. Such a franchise structure enables some excellent business concepts to be expanded nationally, which otherwise would not have been possible.

Few Disadvantages.

Naturally, no marketing structure or  concept is perfect. Any person or company considering franchising should consider professional advice in relation to the suitability of their operation to franchising. There are few disadvantages to franchising, but they should be borne in mind. These include the following key points 

Loss Of Control. 

Franchisees are independent parties who seek to maximize their profits in a way which will not necessarily be in the franchisers best interest. Good monitoring and control of a proper franchise structure is therefore vital.

Know-How Danger.

Since know-how and expertise are purchased by the  franchisee, there is the danger of such know-how getting into the wrong hands and being misused. In this regard, it is imperative that franchisees attend to all areas of intellectual property rights, including trademark protection, copyright, confidentiality agreements and protection of trade secrets.

People Factor.

Business thrives on the good relationships between persons. Management with no experience outside the employer/employee relationship may often find it difficult to adapt to the franchisor/franchisee relationship, For the franchisee is his own independent business person. It may be more difficult to enforce policy and procedural changes than is the case  with line managers

The Advantages.

On  balance though, we believe franchising to be a wonderful marketing concept for the right business and in the hands of the right people the advantages certainly outweigh the negative factors and for the right proven business, franchising should certainly be evaluated as the route to cost-effective growth.

STILL INTERESTED? then contact us.

Our franchises worldwide are designed to complement you in your country of origin. you will receive extensive corporate training and an introduction to people who will guide you every step of the way.

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