Wednesday, December 31st, 2008
The Modern Day Franchising Model is perhaps the greatest business strategy ever created in the history of mankind. Why you ask? Well, franchising pays dividends to both Franchisee and Franchisor in a Win/Win Situation. When the Franchisees win the Franchisor wins in increased brand name and royalty income.
As the brand name increases the Franchisee finds more loyalty in their customer base and the Franchisor finds a greater number of new entrants wishing to buy into the franchise system as new potential team members or Franchisees. This allows the Franchisor to be more choosy in which potential new team member candidates they decide to sell to and thus strengthens the system again with better franchise buyers with more capital, business acumen and strength of character. Of course each new strong Franchisee increase the strength of the Franchise System.
In franchising it is not merely a Win/Win for the Franchisee and the Franchisor, because such strength in the market place allows for a larger organization, which benefits off the economies of scale and that means lower prices for consumers and customers. Those who partake in the products and services of the franchised outlets also have piece of mind knowing that they will receive quality, great service and consistency. Once the franchise system gets going and if it is run properly it is like a rocket ship.
Is there a downside to franchising? Indeed there is but it is probably not what you think. The Franchising model is a highly regulated industry even though it has the lowest number of complaints, almost nil on a percentage basis and of the less than 1% of complaints that are received each year nearly 70% are unjustified and bogus. Then there is the litigious nature of the franchising industry where lawyers have hijacked the laws and regulations and worked too closely with regulators to mold the rules to their benefit. Some call this a parasitic relationship and few could argue case, expect the self-serving lawyers.
As a Founder of a Franchising Company, I built my company from 53 units in 39 cities where we regionally dominated our industry sub-sector to a full-fledged franchising company serving 450 cities, 110 markets after selling franchises in 23 states and 4-countries. Having built the company literally from scratch and knowing every single job like the back of my hand, I feel qualified to help you understand and discover all you need to know about The Franchise Business Model. I thank you for reading my article and perhaps this article is of interest to propel thought in 2007?
Posted in NewFranchise Articles | No Comments »
Tuesday, December 30th, 2008
Burger King is a global brand and its franchises are always in demand from all parts of the world. The company is on an expansion spree in the United Kingdom. If you want to make big with this amazing opportunity, there is no better time. Here is some Burger King Franchise information that would be really useful for you.
First of all the company says that you would be required to spend anywhere between 250,000 to 800,000 pounds. Other than that you would be required to pay the land charges which you might own. There are various systems here. You can go for the basic 700 sq. ft. food kiosk. This is available for 250,000 pounds and a franchise fee of 40,000 charged in US Dollars. The second option is 1000 sq. ft. high street. This is priced at minimum of 450, 000 pounds and the normal franchise fee of USD 40,000.
As a franchisee you would be required to put in at least 40% of the money. The rest can be procured from loans. This is done to ensure the stability and longevity of the franchise. In addition to the aforementioned charges the franchisee is also responsible for paying 5% of the sales as a royalty. Another 5% is required for the national marketing fund. In this scheme you get the franchise for a period of 20 years.
The overall process of application to the granting of the franchise if selected, takes a period of 12 months. This is however an approximate rating and the actual period varies depending upon a number of factors. Some of the time affecting factors is the location of proposed franchise, timings to negotiate the deal and your own ability to the entire process. When the franchise gets accepted, you would have to undergo training for approximately 15 weeks. The training is provided free of cost.
You are required to perform some basic research before you plan about getting the franchise. It is not a really great idea to go for a franchise where there are already ten or eleven franchisees in the vicinity. Look for the places rated by the company as most desirable. You also need to check the fitness of the premises where you want to run Burger King. You might be required to form a company to get the franchise so you should also make the necessary arrangements in this regard.
All in all, a franchise from this company is a great way to start your own business. You do not have to pay the price of a bomb for it and the company offers a really good deal to the people who want the franchise. More than that you with Burger King Franchise, you get the power of one of the biggest fast food brand names in the world.
Posted in NewFranchise Articles | No Comments »
Monday, December 29th, 2008
There is a growing pattern of women entrepreneurs in the present century. Women are not only looking for financial independence but are also exploring new avenues that have been usually unknown to them. The watchword is being able to do their own bit without neglecting their home or their other social duties. Women looking for such flexible career options are particularly suited to the business of running small franchises. A woman or women small franchise is something that will allow that elasticity in schedules; while at the same time it will keep the cash boxes looking pretty.
Each requires different factors from its owners – regarding time commitment, investment, leadership, expertise, etc.
Before you make a selection, it’s important to see which franchises work for you and which doesn’t.
How is a woman or women small franchise suited to the woman’s cause? To start with, it is an official and profitable liaison between the holder of a trademark, service mark, trade name, or ad mark, and a person or a group who desire to use that mark or service, to run a business.
Franchises for Women are geared toward everyone, from the mother looking for supplemental income, to a career sales executive who wants to build her own empire.
It is the expertise of the parent company that makes owning a franchise, a relatively risk free venture. Researches have revealed that since women tend to avoid high-risk ventures, woman or women small franchise suits them just fine. They are rest assured for they know that help is right around the corner. The exact nature of the relation between the franchise owner and the franchiser is of course subject to FTC laws.
Women are so involved in trying to run, survive and find money for their businesses that they don’t see franchising as an expansion alternative.
Franchises are armed with the proper business acumen, owing to the proper guidance in marketing and advertising, site selection, support in administrative and management matters and of course the assistance in procuring funds for the presence of the brand name that is provided by the franchiser.
Opportunities wait in multiple dimensions in franchise companies at the corporate level; expansion of a current single-business operation into a franchise operation; purchasing and operating franchisees from already established franchisers, etc.
Buying your way into franchising provides the opportunity to instantly prove yourself as a leader.
Women haven’t had access to connections and networking, or even the time and energy to know about franchising to evaluate it as a method for being self reliant.
There are three basic models of the franchise business that are present. They are:
Franchising of the product or trade name: In such a case the trade/ brand name or product that is owned by the parent company or franchiser is sold off to the franchisee.
Franchising of the complete business format: Franchisees are provided with assistance in all matters. The franchiser supervises the selection of the site, intensive training programs, product supply, marketing strategy, and even support in obtaining capital.
Distributorship’s: The simplest of the lot, where the franchisee obtains legal rights from the parent company to sell their goods.
More and more women are getting into business today. Homemaking is an unspoken part of their lives, but most of them feel the urge to get out there and do something instead of just staying at home.
Once women understand that they may be able to use franchising to become a franchiser, another woman-founded company is then created.
Although the number of women in franchise leadership positions is progressing slowly, more women are helping to lead franchisers to success.
Franchisers should evaluate how to become more financially independent and how to make the best use of economic resources.
The excitement that a woman entrepreneur shows, rubs off on the others. Men care, in almost all cases, about the bottom line of their jobs, unlike women, who are really passionate about whatever they commit to.
Posted in NewFranchise Articles | No Comments »
