If you are considering starting out your own business, then you should definitely consider something that can easily be franchised because of the following reason.
The franchise system can deliver a cost-effective path for the business development of your company (particularly if your original business has been a success). Franchisees who wanted to be part of your success would be paying for the costs of launching and setting up their franchise as well as the training their staff will go through.
Also, you can rely on your franchisees to provide you with a monthly income as they will also have to pay you a percentage of their own revenue.
According to the Franchise Agreement and Operating Manual, franchisees will be held accountable with how they run their own business units starting from their launch date. This manual should be followed by everyone who wanted to franchise your own business, which means that you are not required to provide the management structure that a company usually provides for their employees.
In short, this means that the franchise network only requires a relaxed and simplified version of the regular management system.
Expansion is quick
Company-run networks do not have the advantage of self-financing business entities have in terms of a low-cost and simplified management arrangement, as mentioned above. A simple management structure also means that these franchised networks and business units can be expanded even faster than a regular company with the help of their franchisees.
Your brand’s name can literally spread like a wildfire all over the country if every franchise you have had were made into a success. In turn, your business will be able to generate increased volumes of sales and purchasing power.
Franchisees, unlike regular employees, have a reason to greatly commit in your own name or brand because they know that they have financial investments to gain. This is why they decided to invest in your business in the first place.
They can also take pride in managing their own business units so that they can be successful on their own and so they will continue to strive to meet and exceed the expectations of their clientele.
Less Recruitment Process
Naturally, franchisees see themselves committing their time and effort to their own business units for a really long time. After all, they are seeking the same success your original business has gained when it was first starting out and if they quit before achieving that goal, then they are more likely to lose out in the end.
When they finally decide to pass on the mantle, then they, themselves, have to find a suitable replacement who would take over all of their responsibilities.
Potential for International Franchisees
Master Franchising is another structure that self-financing business units can take advantage of, particularly if you are planning to expand your company into the international market.
A Master Franchisee would be the one responsible to how they would be adopting your business model into their local market. This would work well even when you decide not to make subsidiary branches or companies in that certain country.
In the Philippines, franchise is gaining more and more popular not only to the well-seasoned business people but to those who just started out their businesses recently.
ImageAbout the author:
Katrina is your average gal living inside the metro who has passion for writing, travel and photography. She admires nature at its finest and always wanted to become one of them. Dreaming to have the Cinderella life one day, humming with the birds, dancing with the clouds.