A Business Strategy
Franchising is nothing more or less than a business strategy for getting and keeping customers. It is a marketing
system for creating an image in the minds of customers about the company's products or services. It is a method
for distributing products and services that satisfy customer needs. Franchising is a network of interdependent
business relationships that allow a number of people to share a brand identification, a successful method of doing
business, and a strong marketing and distribution system.
Safety
For the franchisee, franchising is about risk reduction and safety. You give up the total freedom
associated with being an independent owner to become part of a group of people committed to building a
brand and dominating markets using a common, tested, operating system. You don't have to guess about the most
effective way to build your business, there is a specific system to use.
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Documented Systems
The franchisor provides a documented method of doing business (the operating system), an established brand or trademark that will
have value in the eyes of the customer based on execution of the operating system, and both initial and ongoing support
so you won't have to reinvent the wheel. You provide capital to expand the brand faster than the
franchisor can by itself, and the management talent to run the business and execute the operating systems of the franchisor.
Measurable Results
A successful franchise system should also provide group buying power to cut your operating expenses, faster growth due to
existing marketing programs, results based on your adherence to the operating system, and less risk of
your invested capital. The trade-offs for you are the fees you pay the franchisor for the operating license and
the restrictions you will deal with on the method of operating the business.
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