May 2019 – Franchising POC

Characteristics Of Business Models Perfect For Franchising

Posted on May 27, 2019 by blogger

When rapid business growth is on the menu, you might be considering franchising as a way to sky-rocket infrastructural development and revenue acceleration. For many this is a good choice, however for others it just isnt going to work. In this article we explore traits that make your business model suitable for franchising, and therefore allow you to put more thought into whether its right for your business.

Local Presence

One of the most popular reasons that businesses franchise off their assets is to grow a presence in other markets. Fast food chains are among the most popular franchise-dependant businesses as they require a local presence throughout the country.

You might wish to consider franchising if you need a sales team at a local level, a store-front at a local level, or even if you need the provision of services to happen at a local level.

Strong Brand

One of the strongest reasons why people opt to buy a franchise is the brand. When you buy a franchise from a popular brand, you can set up shop and expect people to know what you stand for right away. This is a privilege that most businesses would die for.

Brand Dependency

Its never usually a good idea to start franchising a commodity business. Although its possible that the business operates on low margins, its important that it has a means of differentiating itself. If it does not, then you have to step back and consider what value you are offering to the franchisee.

Scalable

Some business models scale better than others. For example, some people are extremely creative, and they will often use their creative talents to start a business. However, unless they can find lots of other creative people, just like them, they find that it is hard to allow their business to grow beyond a few staff.

Thats why you have to ensure your business is built in a way that means it scales well. This will often mean that systems and processes are in place that automates processes, and that a system is in place that allows for anyone to be replaced without it being detrimental to the success of the business.

Low Margins

Often franchise businesses will be low margin, high volume businesses. Franchising is a perfect fit for this model because the franchise owner only needs to earn themselves a good wage, and service their capital investment. The business is then able to grow in an, almost, risk-free way.

Economies of Scale

If your business is likely to have increased margin with scale, then this can often mean your business model is perfectly suited for franchising. Some industries, like business services, for example, often report decreased margins during certain phases in their growth cycle. Consider what your margins will look like as you grow.

Vested Management

Each of your franchise owners will have skin in the game. For some businesses this will be more important than for others. If it is important for your business, then maybe thats a sign that franchising is right for you.

Benefits of Franchising a Business

Posted on May 15, 2019 by blogger

Your business is up and running and your customers are coming from near and far to buy your products or services. It might be time to franchise your business if you think your business is unique enough to expand a new branch into every town in order to maximize your brand presence.

Franchising a business can be very profitable and can provide the exponential growth otherwise not possible. It gives the franchisors a chance to expand their businesses manifold and this means generation of more profits and more capital gains.

Another benefit of franchising a business is the lower capital requirement. Franchisors can limit their costs by opening a chain store rather than opening a second store. The franchisor will only need to pay for training and administrative aspects once a franchisee acquires one branch. Franchisees need to bear certain part of the day to day running expenses of the business and keep control of the daily affairs. This saves the franchisor of botherations that otherwise would have fallen on their shoulders had they open an altogether new branch under their direct supervision. However, to start off a franchise; franchisees need to have a significant amount of cash at hand. Although they may pay an upfront fee, franchisees will be assisted by the parent company at the start of the business. This includes arranging the lease agreements, designing and constructing the store, and marketing strategies.

Franchising allows you to grow without sacrificing control over the business. You may not have minute by minute control, but you have control over how franchisees should operate the business; you create and dictate the operating system. If franchisees don’t follow your system, then you can revoke the franchising agreement and take back the business. This is another benefit of franchising a business.

Knowing how to franchise your business is essential. There are different ways in which a business owner can convert his traditional business into a franchise model. You will want to consider the best opportunities that match your lifestyle, business and financial goals. Without knowing how to franchise your business you could spend a tremendous amount of time and effort trying to find the exact way.

Hiring a franchise consultant is not only the best beat when considering franchising your existing business but also essential. Franchise consultants provide different types of franchise services, from buying a franchise to franchising an existing business. The franchise consultant will devise a plan for you which ensure that you are going in the right direction.

Franchise consultants, along with your franchise attorney, provides you franchise services to establish your initial business plan, help iron out any questionable details or omissions, and design the best proposal to present to the marketplace. In addition, they can assist you in finding the best franchisees to invest in your company, and successfully match you with partners who are more likely to be successful in maintaining your brand’s integrity.

Franchising a business can be an effective tool to ensure its growth and larger market share. Many businesses have gone this route and become global leaders in their line of operation. Such companies include: McDonald’s, KFC, Dominos, Pizza Hut and many more- However, franchising cannot be tailored for every business owner. So, it is advisable to talk to franchise experts before you start franchising your business.

About Author :

Sparkleminds is one of its kind organizations that provide franchise services for corporate houses. They have expertise in franchising a business by creating consciousness among masses about various facets of the franchise. This is one of the major objectives of Sparkleminds. This particular article illustrates these points further.

Utilizing Information To Purchase Pizza Franchising Rights

Posted on May 11, 2019 by blogger

There are many different restaurants today that are franchising opportunities but there are a few that standout from the crowd. Pizza franchising has been among one of the most sought after type of restaurant available today. If you are interested in purchasing and utilizing some type of restaurant to further your career, than pizza franchising is a no brainer. One thing you should do initially is to do some research on the demographics of where your pizza franchising will be to determine whether or not the area can use another pizza joint or if some other venture would be better.

Pizza itself has been an icon in America for many years now. There are many Americans who eat pizza on a weekly basis and statistically, is one of the most consumed foods in America. Now, there are many different pizza franchising opportunities available all across this great nation of ours, but suggestions are that you should look into a franchise that is different from the rest of them. This can give owners the edge they need to make an impact in the area you live. The mom and pop pizza parlor on the corner of every town across America have stayed in business so long because they put a key ingredient in their product, love and fresh ingredients. This is the same way that a pizza franchising venture that you are looking to purchase should be run.

Another suggestion is that you take the opportunity to look up the history of the company. Finding some detailed information on how the company has been run and if there is a future for them in the market. This information will in itself will be a good indicator of whether or not the business is having success in franchising business or if they are just spinning their wheels. This feedback will also produce decision making abilities that many should follow in this type of situation. Today, pizza is a big business and if you do not have the right plan, you could be left behind while others are making a successful story out of life.

Hopefully, some of the information given here will help you think so decision about pizza franchisee opportunities that are available in your area. Individuals who are looking to start a business are in it to make money and if the company that you are dealing with initially, for the franchising, is not making a sound commitment to helping its franchisees succeed, then you might want to serve other pizza franchising opportunities available to you.

-All About Franchising In A Nut Shell

Posted on May 6, 2019 by blogger

In simple terms, a franchise gets created as part of an agreement made between the franchisee and franchiser. Here, the franchisee has the authority to use the franchisers trademarks and logos and market its products. A legal agreement is being made to protect the individual interests. An initial franchise fee is paid by the franchisee and a royalty payment from that time on.

Franchising has now become an established business activity. With the help of franchisees, large corporations can achieve diversification and also an upper edge over other small businesses. This is now increasingly popular in many different industries, especially the food industry. Along with fast food restaurants there are many other such sectors that are franchised today actively. With franchises, a business has the potential to create new business units. As per a recent survey, around one-third of total retail sales are made via franchise stores.

Nothing can be more comforting than owning a successful franchise in food or any interested industry. But care should be taken while opening a franchise store in a new market. Many times the outcome does not meet the expectations. For restaurant owners who are interested in expanding their business but have shortage of management personnel or financial resources to operate a chain of stores, creating franchise opportunities can be a solution to the problem.

The initial franchise cost is the onetime payment made by the franchisees in order to secure the new franchise. The royalty fee paid henceforth depends on the gross sales from different stores. A franchiser can make money through the franchise fee, sale of supplies and the royalty fees. In order to obtain the legalities of a franchise, one needs to consult a franchise lawyer and a consultant having good knowledge about franchising. The franchise lawyer will do the necessary paper work like franchise contract, register and drafting of franchise offering circular and the like. The right consultant on the other hand can help you with advertising, operation manuals, public relation materials and training programs.

If you are making a profit with your franchise business then you can always put the businesses for sale if you want to. You can get potential buyers who can strike a deal with you. But if you are not making enough profit then it is pretty difficult to sell your business in the market. There are also magazines available which are dedicated in providing data regarding the franchising business.

Points To Consider Before Business Franchising

Posted on May 2, 2019 by blogger

Business expansion… It’s like the icing on every entrepreneur’s cake. It seems to be the ultimate business opportunity for anyone who has worked hard and invested a lot. What better way is there to expand your business than through franchising your own business franchise? Truly, this is a promising move when done correctly. However, business franchises which lack proper research, statistical back up and others can prove to be a total disaster.

Setting up business franchises should always be backed up by thorough researches that have been methodically completed. All concerns regarding the establishment of business franchises should always be based on studies which assess the performance of the original branch of the franchise. This will be the main determinant of how weak or strong how strong the foundation of a business franchise really is.

First, consider the marketability of the original products and services of the business before putting it up for franchising opportunities. To assess this accurately, make sure to evaluate the business’ performance in relation to the current environment. Some useful determinants of environmental variables are socio economic conditions, local natural conditions and others. To further make use of your accumulated demographics, also start testing if these variables are the same with that of the prospected areas where you want to set up your business franchises. Remember that the success of a business in one place doesn’t necessarily guarantee the success of failure of its business franchise somewhere else, unless statistics say so.

Second, you must make sure that you have ample resources and capital that can keep the business franchise running, while taking care of your mother branch. The capital you must readily have should cover expenses for supplies and other expenditures which need to be settled in order to make you business franchises work. Most of the time, it is better to start off with money you already have, instead of loaning too much. If you can’t afford it, don’t expand. That’s a hard and simple rule for wise business franchise development.

Lastly, always consult a trusted and experienced franchising consultant before doing anything rash. Their piece of advice will be very handy in safeguarding the welfare of your business. With the help of reliable franchise specialists, all the blind spots of your pending business franchises will be revealed. Such information will be very useful, especially if you’re new to the world of business franchising.

Always consider these before pushing through with business franchise opportunities. Although these may sound too complicated, they will lead you to more prudent decisions when it comes to expanding your business through franchising opportunities. In the end, you will see that these are crucial aspects of business franchise development that you would never want to miss.