Which business model made your entrepreneurship successful? Originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
A well-established and proven business-format franchise should provide:-
- An established market for the franchisor’s products or services.
- Proven sales, marketing and operational procedures.
- The benefit of an established business name.
- Training, ongoing support and help in running the business.
- Where appropriate, help in finding, fitting out and furnishing premises.
In this article, I shall look at the two sides of the franchise relationship – that of the franchisor and franchisee. To be successful, both need to benefit from the relationship.
Franchising from the franchisor’s perspective
Franchising has grown steadily in the UK over the last decade and is now present in almost all business sectors, especially the fast-food and service industries. With many well-known companies operating successful franchise networks, you may be attracted to the idea yourself. It could be the ideal way to expand your business without the huge capital investment needed to set up a wholly-owned operation.
As a franchisor, you grant a license to local operators (franchisees) to sell your products or services, trade under your name and use any of your trademarks and logos for a specific period. The franchisees have a personal stake in the business and own their outlets so you can expect them to be more motivated to maximize sales than salaried managers. However, you specify exactly how your franchisee must operate in strict compliance with your business style.
You may be involved in substantial expenditure at the outset to develop your franchise operation, but when it comes to the stage at which you are appointing your franchisees they will pay you an initial fee that will over time help to reimburse these costs. When they are up and running, you will receive a regular income from them by charging a management service fee, or marking-up the price of goods you supply.
At first glance, it may seem too good to be true, but as well as benefits, franchising can have its drawbacks. The development of a successful franchise network requires careful planning, continuous monitoring, and advice and support from professionals, such as a franchise consultant, accountant, franchise lawyer and, of course, your bank manager.
So why are banks interested in attracting franchise business? We see lending to a franchisee as much less risky than lending to someone starting a business entirely on their own. This, however, is only true of well set-up, sound and ethical franchises, and unfortunately not every business calling itself a franchise can claim to be that.
Franchising is not the path to salvation for an ailing business and even when it is done properly by a successful business it may take some years to achieve a positive cash-flow and worthwhile profits.
This article offers a brief overview of the aspects a business needs to consider when expanding through franchising.
What is franchising?
Franchising is a “joint venture” between an independent person (the franchisee) and a business (the franchisor) which wishes to expand its activities.
The venture is governed by a contract. This gives the franchisee the right to operate using the franchisor’s trade name/trade mark, in accordance with a business-format or “blueprint”. All aspects of the franchisee’s business are strictly controlled including image, products or service, systems, and administration. This method is usually known as business-format franchising.
As a franchisor you will:-
- Allow franchisees to use your trading names, logos, business style and format.
- Help franchisees establish their own businesses to a pre-determined format.
- Provide continuing support to enable franchisees to operate and develop their businesses successfully.
You can only become a successful franchisor if you yourself are already operating a successful business with a good track record, and have sufficient management and financial resources to develop and support a franchise network.
There are numerous points indicating how expert and fast-growing PHIXMAN family is. Their generous services build the goodwill by itself, resulting in an expanded audience PHIXMAN is a readymade and well-established business that needs expansion. It is a ready form of business seeking expansion in new market areas with the help of a local representative.
Devices have become so much more than a simple means of communication. Coming everywhere with us, they are used for work, play, social media, photo taking and more. So when the unfortunate happens and your device is damaged, you’ll want a fast and affordable solution. Their trained and experienced technicians can repair any problem you can throw at them.
PHIXMAN is a company created with a single premise, and that is to offer you the very best, highest quality phone screen repair services on the market. Their team works very hard to ensure that you always receive the very best value on the market.
They hire only the best professionals in the industry, which means that you will always get to have nothing but the highest quality on the market. That alone shows the professionalism and focus that we deliver at all times. Rest assured that they are here to help you reach the outstanding results you always wanted.
If you want to take your content and experience to the next level, all you have to do is to hire them now, and they will gladly assist! Keep in mind that they can handle any screen repair. Hire them right away and let them repair your phone as fast as possible! You will not be disappointed!
If you buy a franchise of PHIXMAN it will let you use its brand name, trademark, service mark, and management skills for developing and expanding franchise business.