April 2018 – Franchising POC

Franchising In A Nutshell

Posted on April 29, 2018 by blogger

if you are thinking about starting up in business under your own steam it is critical that you choose an option that is related to your interests and skillset. You must also be sure that the market of interest is constant and not a trend.

Alot of people looking at starting up in business for the first time are looking closely at franchising. We can look at why this is and how to decide if a franchise option is a good option for you?

So lets look at who and who is not best suited to run a franchise business.

Business format franchise profile definition

A business format franchise will usually comprise of the following components, It should be:-

A business system that has been proven
Can be replicated
Has national and local support in place
Ruled by a contract
Posesses branding and recognition that contribute value as intellectual property that is owned and protected

What makes a good franchisee?

The franchisor is the owner of the brand. The local operative is called the franchise owner or franchisee. Each thriving franchise owner needs to have at least the following attributes for the franchise they are running to be successful. They will be:-

Able to Have the ability to replicate the proven franchise system
Be enthused about the franchise system
Have the ability to serve their customers passionately
Have a good manner when handling people
Be secure in the knowledge that their family has been behind them from day one
Have the where with all to come up with finance in order to purchase and operate their chosen franchise

Bad franchisee profile

Not everyone is cut out for being a franchisee. Considered carefully is franchising is really what you want to do if you:-

Are not sure that you have your familys support
Don’t have enough funds to set up your chosen franchise
Are not prepared to follow other peoples ideas
Have difficulties organising your schedule and prioritise tasks

Philippines Franchising Business

Posted on April 25, 2018 by blogger

Over the past years, franchising has become one of the fastest routes to business success in the Philippines. Both local and foreign brand names find themselves in a tight competition to gain a sizeable margin of the Philippine market. The franchising industry has also contributed significantly to the growth of the economy in the Philippines.

Franchising can be viewed from two perspectives: the franchisee and the franchisor. For the franchisee, a franchise is like a business wrapped in a package, with all the goods, services and operating manual in it, ready for roll out and operation. Counting on the elements of a well-established brand name and a tried-and-tested system of running the business, the franchisee receives many benefits, including access to information and technology that comes with the business, training and tech support of all aspects of the system, and the fact that a name that has already built its reputation for a number of years is a lesser risk than building a name from ground zero.

Franchising, from the franchisor’s point of view, has a different meaning. It presents an opportunity for business expansion; something that would have been difficult is done by them. Franchising for them is convincing the buyer (the franchisee), that their business is a good buy and worth investing in. Having a franchisee ran an outlet of their business means they can extend their products and services to more people in a wider coverage.

Buying and selling a franchise business in the Philippines is governed by the Philippine Franchise Association. This body gives guidelines and policies to regulate and promote fair practices on franchise activities by both local and foreign brand names. It is also tasked at providing assistance to franchise holders and buyers like financial programs, seminar workshops and information dissemination.

So much does a franchise cost in the Philippines? That would depend on a number of things, like the type of product or services offered, the size and location of the intended franchise outlet, layout / design of the outlet, beginning stock inventory, facilities and equipments needed along with its operating and maintenance cost, insurance and other pertinent expenses. Other equally important matters to consider include the franchise fee, training programs that the franchisor would be providing, royalty fees, feasibility studies to be conducted, marketing campaigns and advertisements.

Franchise for food cart businesses are generally cheaper to acquire, and prospective buyers can start owning these for as low as fifteen thousand pesos to an average cost of one hundred thousand pesos, depending on the type of food being sold and the size of the cart. A water refilling systems cost around two hundred to five hundred thousand pesos to operate. Other bigger franchise, like gasoline stations and food manufacturing and retail business, can go as high as five to ten million pesos, but the returns are well worth the investment.

Franchising – The Licensing Of Trademarks And Methods Of Doing Business

Posted on April 20, 2018 by blogger

Franchise is a method of doing business by licensing trademarks. A recurring royalty fee being the prime source of income, the advent of franchise business dates back to the 1850s. The earliest example being the bars of New South Wales, the agreements between these bars and the breweries can be considered the foundation for modern franchise businesses. Further examples of early franchises include the telegraph system (operated by various railroad companies but controlled by Western Union) and exclusive agreements between automobile manufacturers and local dealers.

The term franchise holds multiple definitions. Encompassing a plethora of varied business relationships, franchises sometimes do not follow their legal definition per se, for example, an appliance maintenance franchise. In this case, though the after sales services are supposed to be done by the manufacturer, they grant the license for maintenance to some other party, thinning down further the dividing line between outsourcing and franchising.

A franchise agreement is the first step between the willing parties; the agreement binds the parties together through contractual provisions, strengthening further the arrangements of selling one’s own products or services through another person holding the license. The agreement also specifies the area of operation under the franchise holder, though the franchise provider usually denies a complete and exclusive control of the franchise holder over that particular territory. Franchise in the US abides by the jurisdiction granted by the state and federal laws though there is no federal registry of franchising or any federal filing requirements for information. However, franchise holders are required to have a Uniform Franchise Offering Circular (as per the Federal Trade Commission rules); it helps in disclosing the business transactions and purchases that remain involved. As of now, the Financial Times declared that if sales by US franchise businesses were translated into national product, they would qualify as the 7th largest economy in the world.

Franchise-based restaurants opened gates for the wave of franchise businesses since the 1930s. First came the traditional sit-down restaurants (Howard Johnson’s) and then McDonalds in the 1950s rendering United States a franchise business dominion to the point where proprietorship business has become the exception rather than the rule.

Kiosk The Best Place To Start A Franchise Business

Posted on April 16, 2018 by blogger

Today the concept of franchising is helping many prospective investors and entrepreneurs to quit the corporate life and start their own business with confidence. Even with a very low investment one can think of starting a franchise business of their interest. People have become more conscious about investing their money due to the frequent changes in the economy and thus they look for options where the investment is low and profit is high. This has led to the popularity of low cost top franchise opportunities such as bookstores, gift shops, flower shops, apparel shops and so on. These are some business where investors can enjoy high profit.

For any business to be successful, enough time, effort and energy is required. In fact, the location of a business is very important as it is directly linked with the visibility of your brand. When we talk about brand visibility of a low cost franchise business nothing can be better than starting your business in a kiosk. In todays busy world, kiosks are growing increasingly popular, as it can does not need much space and can be opened easily. Low cost top franchise opportunities like jewellery, luxury brands, watches, sunglasses, juice shops, coffee centers, chocolates, sweets and ice-cream can generate maximum profits for the owner if started in a kiosk.

Running a successful top franchise business in a kiosk format is getting popular for a plethora of reasons. Mostly in a kiosk, low cost franchise business can be opened which is easy to start and maintain. By starting a business in a kiosk one can avoid paying large amounts of overhead or high rental fees. Due to the small size of kiosk, fewer employees are needed to manage it, keeping the operating costs low as well. As kiosks are often located right in the entrance one enjoys maximum visibility for their business. This ensures more visitors to the shop and thus registering more sales too.

Aspiring entrepreneur who is keen on starting a franchise business in a kiosk must look for a perfect location. Some perfect locations for a kiosk to gain maximum footfall and profits are shopping malls, airports, large outlets, high-streets, hospitals, university camps and local fairs. Even though the size of a kiosk is much smaller as compared to an outlet but if it the location is great, it can do wonders to your franchise business.

However before deciding and venturing into any top franchise opportunities in a kiosk you need to do your research properly. It is better to talk to the franchisors to get an idea about what type of location will be suitable for their products or services.

To conclude it can be rightly said that investing in a low cost franchise that can be started in a kiosk franchise can surely make your business success to help you enjoy high profit. However never forget that success depends upon the location of a kiosk and on how well the franchisee can manage it.

Business Franchising Online

Posted on April 11, 2018 by blogger

Franchising is a partnership between two parties. One fully owns the company and is responsible for protecting the franchise or branch. The franchise manager is responsible for maintaining the standards of the original. Both parties benefit from this partnership. The party who owns the company is called the franchisor, while the other party is called the franchisee. The franchisee has the responsibility to uphold the franchisor’s established industry standards.

The important thing about franchising is that the original business owner has to have the means to provide the franchise with the necessary equipment. That also means that the original company has also had significance in the community it serves. This can be achieved by using the Internet for marketing. Online marketing may take the form of search engine optimization (SEO), online banners, or pay-per-click ads.

Business websites are effective in introducing the company’s products, services, and standards to potential clients. Business websites are also great for attracting employees, managers, and fellow businessmen interested in franchising. It is good to make the business website aesthetically attractive, easily navigable, and extensive with information.

A business that has become famous in its original location and that has gained enough recognition can expand by franchising. A franchise is a branch, another establishment that is basically the same company but in a different location. This franchise then has a right to be known as an establishment in itself. This is where the need for franchise websites takes place.

The franchise websites act as a link to the original while being an individual entity. Web developers can make these franchise websites as individual websites equipped with links to the original business website. The original website shall also be equipped with links to its affiliates, the franchise websites themselves.

franchise websites similarly benefit from attracting customers, employees, and potential businesspeople who would like to make try their hand at a new business venture. The chain always has potential to grow. That is comparable to a tree with roots that grow so extensively that new plants can grow from it. Life goes on, and businesses keep growing. The possibilities for business growth always have the potential to flourish like a forest.