subject: Seven compelling reasons to franchise your brand [print this page] Seven compelling reasons to franchise your brand
Franchising has an ever broadening appeal with more and more businesses picking it as the technique for expansion. Individual businesses do it for numerous reasons, but you'll find some elementary strengths that franchising has to provide and which are at the heart of the decision to franchise for most.Here we have a look at the seven most frequent reasons people choose to franchise their business.Capital outlay. No other method for business development can provide the type of success that franchising can for so little capital outlay. The key of course is that it is really just about self funding given that business units are launched by franchisees who invest their own capital to get their unit started. On that basis it is feasible to develop a regional, national or even international brand at a small fraction of the cost it would take a company if it were to carry out the same on a wholly owned basis. And clearly, the larger the cost of opening every unique unit, the more this applies. This perhaps explains the added burst of focus there has in franchising since funding for small to medium sized enterprises has turn out to be more tricky in recent times.Rate of growth. Franchising permits enterprises to develop more rapidly. Partly again this is because it can be achieved with considerably less capital. But also, rather than use a single team devoted to establishing new units one at a time, with franchising you might have an army of franchisees available searching for premises, negotiating leases, organising shop / vehicles fit outs, ordering stock and every one of the other factors that a new unit has to try and do.Motivated individuals. This one does not require much thinking about. Who do you think will work harder to accomplish good success in their business unit, an employee or a self employed franchisee whose financial well being is tied up in the business enterprise? It is why corporations that convert company owned units to franchises regularly see an enhancement in performance overnight.Marketing costs and momentum. Ordinarily the franchisor as well as the franchisees might both contribute to the marketing effort. As an example the franchisees might conduct advertising at a neighborhood level to compliment what the franchisor is carrying out nationally. For the franchisor it means that the financial burden of marketing and advertising is getting shared with the franchisees and bigger market penetration could well be accomplished on a local level.Local knowledge base. An often quoted mantra in franchising is that its power comes because of the combination of a national brand name run by individuals with good local awareness. It can be a successful combination that will help out compete major competitors.Entrepreneurship. If a business isn't going forwards it's moving backwards versus its competition. Franchisees present an endless supply of new ideas that will assist a business keep ahead of it's competitors.Reduced exposure to failures. Regardless of just how much all of us wishes each man or woman that ever goes into business to be successful, failure is actually a fact of business life. As a franchisor, the corporation is protected from the worst impacts of having a unit that fails.Find out more about the reasons for franchising your business here how to franchiseFind out if your business is franchisable here franchise my business
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