June 2018 – Franchising POC

Brands En Route To Franchising

Posted on June 27, 2018 by blogger

The franchise opportunity has now become the best option for business expansion and also has made the great channel of income. If you opt the franchise business that means you are selecting the new opportunity that will surely bring out the positive revenue in order to your business. But before starting the business you need to put some extra efforts. Remember the first selection of your franchise will always be the first opportunity for your business.

For the expansion it is very essential to select the best franchise businesses that will provide the positive track for expand the business worldwide. The parent company or franchisor With whom you get connect for the franchise business, they always offer business plans, brand name, business strategies, market tools that helps to lead your business. At the initial stage of business, the franchisor provides online training, business ideas and even also provides the financial support by offering loan with minimum rate of interest.

To run the franchise business perfectly the franchisor plays a vital role. The franchisors are basically social media platforms that have many of potentials customers. They attract many of franchisee from the market as well as from the social media sites. Anyone who is interested in new franchise will have to pay the franchise fees for using the brand name of parent company. The investors who have first time entered in franchise market, for them the low cost franchise is the best for expansion. It should be remember if you have marked a successful franchise, then you have won half of the battle.

Brands build up presence via franchising:
In India the franchise industry is continuously growing with high rates. Seeing the great success of franchise industry, numerous brands are opting franchise route. Brands like Jamba Juice, Mahindra 2 Wheelers, GRILL INN, Keys Hotels, CCDS, Just Watches, Promart, Fastrack, Nife world, Edukart.com, Titan, Tesco, ORRA, ShareKhan, Salsa Wraps, Tresmode are spreading their wings across country as well as nationwide. These brands have successfully made their presences by setting up the franchised outlet in metro cities, tier I, tier II & III cities of country. Even some brands are also taking steps towards global expansion. After seeing the successful entrepreneurial journey of companies, Sportsfit, Pudu Lifestyles, Lite Bite Foods, Bighdey Nawab, Just Dogs, Maid2Clean brands has also decided to offer the new franchise business opportunities to prospective entrepreneurs for further business expansion.

So if you want to take new franchise opportunity then you can go with those brands, mentioned above. To start the biz with great brand name opens the bright doors for your business. In franchise business you get a perfect path and great business plan from established brands to take your business further.

Therefore, before opting the franchise business you must go on board of brand name and also must aware about the advantages or disadvantages of business. So its totally depends on you with whom you want to run your business perfectly.

Franchising, Social Media, and the Changing Online Marketing Landscape

Posted on June 22, 2018 by blogger

The worldwide use of social networking media such as Facebook, Twitter, LinkedIn, MySpace and many others has grown by leaps and bounds in recent years, affecting the business world in radical, unforeseen ways. These online media phenomena are increasingly used by brand owners, their customers and their employees alike as what is now the topmost marketing tool. This article details some of the challenging issues and implications that have gone along with the use of such sites and the particular impact of such issues on global franchising.
We at FGS hope to provide some practical guidance on how social media usage should be managed and controlled in international franchise arrangements. Because of the relative infancy of most social media and their recent adoption by franchise systems, many of these issues have only recently been identified, and the bulk are still searching for a final resolution.
Social media is dramatically changing the fundamental forces of that economy: who pays attention to what, who influences such decisions, how that is tracked and measured, the speed of response, and how it’s monetized. Just as the average prospective customer will check the online reviews for a particular business, many potential franchisees these days are highly web-savvy, and will research a particular business on the web to get a sense of its franchisable status, by its social media presence.
The opportunities in this arena are enormous for franchisors. For a good number of consumers, online communication is now more likely through social media than through email. The commercial potential of this trend has long been surmised, and legitimate companies must take advantage of these opportunities.
The incredible rise of online networking has been driven by younger age groups, but social media are no longer the domain of this demographic only. Consumers from a broad range of demographics are now regular users of social media, although preferred sites will show some variation in their audience.
Social media represent a relatively inexpensive method of (franchise) marketing. However, not all campaigns achieve desired success, and many marketers are still struggling with these relatively new formats. Companies will be better served by listening to customer contributions on such sites as Google Places pages (the #1 source for business reviews online), Yelp, and other user review/ratings sites, rather than using social media as another channel to dictate established brand values. Google now counts the social media conversation regarding your company as the highest indicator of your worth as a business.

Classical Franchising Facts and the New Online “Marketology”

Franchising traces its roots back to ancient China. It is a system for expanding a business and distributing goods and services. It is a marketing method, which has been called by many business experts, the greatest marketing strategy ever created. It is a program that creates amazing opportunities for business ownership, brand awareness and success, and personal wealth.

In the United States, only 8% of retail businesses are franchised. Amazingly enough, these same 8% of franchised businesses do over 40% of the retail sales in the United States. Franchising has the ability to capture much more of the market share. The increased market share is due to three main attributes comprising a franchise:

1.A brand name. Even a newer brand name usually has an advantage over an unaffiliated business.
2.A successful business system. The proven system allows franchisees to follow a successful plan with a high success rate. The franchisee can also enjoy cost savings as a result of the buying power of the franchise.
3.A support system. The franchise will have the expertise of its successful franchisees and franchisor to help them succeed. They are not in business alone.

The Gallup Organization conducted a poll on franchisees’ ownership experience and attitudes. Here are some results:

More than 90% said that their expectations were met, or mostly met.
More than 90% said they considered their franchise to be successful.
More than 65% said that they would have not been as successful if they had tried to open the same business on their own.

Here are some eye-opening social media networking facts, gathered by EPM Communications Inc. (May 2010):

More than 140 million Americans log on to a social media site every month and that number continues to grow.
70% of adults have Facebook profiles.
One-third of social media users are 45 and older.
The majority of travelers visit social network sites to plan and share details of their trips.
Half of those who friend restaurants on social media want to be alerted to deals or receive coupons.

Imagine the number of those folks who are savvy entrepreneurs or business owners (or prospective business owners) who may “stumble upon” your franchise marketing material or companys social media conversation. It certainly spins the wheels of possibility, doesnt it?

Let FGS experienced team of advisors and marketing professionals guide the way toward your franchising success and high-level brand recognition. Call 480-223-1500 for a free consultation today!

The Advantages Of Business Franchising

Posted on June 18, 2018 by blogger

If you are looking to start a business using the franchising model, then there are certainly lots that you have to consider before hand. It’s also, probably, wise to consider consulting with a suitably qualified specialist. Franchising is a model used by many large businesses, including Subway and McDonald’s, which has inevitably contributed towards their rapid expansion and global presence.

Doesn’t Dilute Equity

When you finance the growth of your business through franchising it allows the existing shareholders to maintain a greater share of equity within the firm. This means that going forward they can run the business in a way that they see fit, and capitalize on opportunities when they arise.

Scale Quicker

Your business will be able to scale much quicker when you opt for the franchising model. Each time you enter into new markets, and sell more franchises, your balance sheet will become stronger through franchising fees. This is in comparison to other businesses, where they will often have to heavily leverage their business or dilute equity to finance this.

Limit Losses

Dependant on the structure of your franchise agreement it is unlikely you will be able to make a gross loss from selling a franchise in any giving trading year. Most franchisees pay a yearly management fee to the franchisor, which is a percentage of revenue. This means even if one particular franchise is not profitable, this will not impact the business as negatively as it otherwise would. This makes the business far more stable, with more predictable earnings than most companies.

Well Managed

It is likely that each franchise will be well managed when the owner is so closely vested in its success. This allows for your business to worry about micro-managing less, and worry about long-term strategy more. It also means you will most likely have higher caliber management in place than you otherwise would.

Cannibalization Less Problematic

If two McDonald’s franchisees open restaurants near each other then it will probably benefit the parent company. Not only do they benefit from the initial fee from both companies, but they also benefit from the increased revenue brought by their wider reach.

Although this may benefit McDonald’s in this case, if they owned the stores directly they may find that they were competing against each other for the same business. This means that total revenue would be higher, but profitability would take a hit. With business franchising, your business becomes immune to this.

Encourage Efficiency

Through making the franchisee responsible, as directly as possible, for the costs that they bring to your business it’s possible to drive efficiency within your business in a way that wouldn’t otherwise be possible. If one franchisee is using up more head office resources than you would like, there expenses can reflect this.

Economies Of Scale

Because you will be able to reach critical mass much faster than you otherwise would, it means that expenses can be shared out among a larger organization. For example, when the business pays for a new product design everyone benefits. This makes the business more cost efficient.

How To Plan A Franchise Business In The Philippines

Posted on June 11, 2018 by blogger

Putting one’s hard-earned money into a profitable investment is something that most people want to do. However, with the various investment vehicles today, a lot of us are at a loss of which is the right one to invest in. Having a business is a popular option when it comes to investments; however, starting one from scratch takes a lot of effort, time, and money. This is the reason why people who are keen to having their own businesses prefer to go for franchising opportunities instead of starting their own personal line of trade.

In a country like the Philippines where you cannot really tell how a start-up business will prosper after a few years, it is logical to go for something that has a recall with the public. This is the advantage that franchising has over new businesses. The fact that branding is what attracts a customer’s loyalty makes it easier for a franchise owner to maximize his returns.

However, it is important to note that while franchising is a popular way to have a business, it is something that cannot be done by just about anyone because it has its limits. When you franchise a brand name, you are limited to selling it the way the original owners of the franchise do, so if you crave control and dynamism to do whatever you want with your business then franchising may not be the best type of business for you.

On the other hand, if you only have a limited experience with business yet are amenable to follow the established system of the franchisor, then choosing to have a franchise will work to your advantage. One can indeed say that franchising is a path with low risk and a high potential return.

So, how does one start a franchise business in the Philippines? Firstly, you have to identify a brand name that sells. Remember it is very tough to maintain a position in the market but having a brand name that people trust gives you a competitive edge. The name of the franchisor itself is the biggest kind of advertisement you can give for your business so choose wisely. You also need to have interest in the particular business you want to franchise because once you start operating it, it will be on your mind 24/7. Bear in mind that it takes a great amount of passion to get the business running.

Once you know the kind of franchise business you want to invest in, the next step you have to take is to find a franchisor you want to strike a deal with. You can consult online franchising directories or local franchising magazines for information regarding the franchise opportunities in your area.

Lastly, before signing any agreement with the franchisor, make sure that you negotiate and understand all the terms regarding the franchise. You can even present your own business plan on how you plan to help the franchisor by improving your franchise outlet.

These are the general steps on how to start a franchise business in the Philippines. The success of a franchise outlet starts with a simple choice of getting the right kind of branding recall. Therefore, when you think of franchising, make sure that you put a lot of thought into this step more than anything else.

Is Franchising Your Business For You Know From Franchise Consultant

Posted on June 8, 2018 by blogger

Franchising your business can be an excellent way of expanding your company’s profile in any locations, states and nations. When you make the plan to franchise your business, you basically give rights to investors to use your trademarks, logo and proven business who in return of this pay you a fee on some pre-defined terms. Even if franchising is popular for many companies, it is not always necessary that it will be for your business concept too. Not all businesses can enjoy the benefits of franchising.

To franchise your business in a fruitful manner, a lot of preparation is required from your end. In fact, you should think about franchising only if your business is ready to franchise. The conclusion must be made from your end. But the question is how? Well it is very easy, just get answers to some questions such as: Is franchising right for you? Is your business expandable? Will the target audience like your products or services? Having answers to these questions will give you an idea whether your business is ready to become a franchise.

In fact, if you are not able to analyze yourself, take help of a franchise consultant. There are many companies and firms who offer franchise consultancy and are ready to help you in all possible manner.

A franchise consultant will help you to know:

The unique characteristics of your business that might help in franchising your business. For any franchise business to be successful there are certain elements such as unique product line, quality management, easily manageable concept and so on.

There has to be something unique about your product or service that investors might be interested upon to invest in your franchise concept. This unique element must be the highlighted part of your franchising network.

Market survey by professionals is must to come to a conclusion whether your business can be franchised or not. Franchise consultancy firms will first do a survey of the market to find what whether there is a demand for the products or services your company might be dealing with.

Experts will also decide on the budget required to franchise your business. Developing a franchise business needs both time and money. Once you are ready with the franchise proposal, you’ll also need to market your franchise opportunity. Financing your franchise expansion is a very important part of your plan to franchise your business.

When franchising your business, you need to provide a blueprint of your business operation, training, marketing, financial and legal aspects of the company. By taking help of experts you can successfully franchise your business.

There are many franchise consultancy firms who even help in preparing a franchise agreement and business proposal that are must when you decide to franchise your business. It is the detailed business proposal that will attract investors towards your business concept, and on the other hand without franchise agreement no one will take your business as a genuine one.

To conclude, taking help of a franchise consultant helps in franchising your business in a legal manner and in a way that can help you earn profit. Hence, if you have an established, successful business franchising your business is just the right option for you to consider.