For the franchiser
Why to franchise
If a company can franchise is because it is a healthy and profitable company, which develops a sufficiently proven and that has a good positioning in their industry. Franchising is not complicated. A franchise does not start with the simple decision of franchising our business, but at the moment when the company begins its journey.
Cost-effective expansion
The franchise system is more advantageous and attractive to any company. Grow and expansion with lower costs than would correspond to a direct development by opening own units, gives the franchise its most obvious attraction.
The extent and rapidity of growth
The franchiser should be aware that rapid growth can lead to many problems if not adapted at all times to the structures actually available. The expansion must always be careful and responsible planning.
The franchise, through a gradual development, promote the employer’s position in its sector of activity: firstly, to advance their potential competitors in those markets that they have no physical presence. Secondly, the sense of network, coverage and service that can get transmitted to the market.
Customers
These benefits are materialized by the reduction of intermediaries, greater control options, the speed of decision. However, this will lead to the coexistence of two different distribution channels: a network of distributors - customers (wholesale) and a chain of franchisees.
Increased profitability growth
The franchise will be based on continued assistance to find a monetary compensation from the franchisees of the chain. We can mention: the rights of entry, operating royalties, fees for advertising, etc.. all concepts that will adequately cover and return effort of the franchiser company.
Key aspects
Business plan
The franchiser must have financial support for common services during the process of launching the franchise, and to provide adequate service to the network and provide assistance for the chain. In addition, it must be surrounded by a good team. Human resources are essential to the attack of any kind of plan in a company.
Marketing plan
The essential aim here is to position your brand against other already well established in the market. The franchiser must plot plan to launch its brand in conditions of strong competition. Advertising and various marketing activities to be undertaken must be homogeneous, at least until the brand is established.
Communication with the franchisee
The constant contact with franchisees is essential. To be interested in their needs, their problems and concerns will help us know whether we have taken the right path.
The importance of the customer
Market knowledge will give us guidelines on how to approach our potential customer and a good marketing plan will target our potential customers.
Facilities
The franchisor is the one who set policy for the location of the premises of their franchise. Without an analysis and a market study, any such decision may lead to absolute failure.
Market developments
The franchisor has to be in permanent contact with what is happening in the market and, in particular in the sector in which it operates. Present products and services based on renewed customer needs. The observation of the market also gives guidelines to choose different search strategies for expansion.
Sectors
We can highlight some important areas of activity that are being imposed with force in the market such as telecoms, coffee shops, education, and jewelry. Moreover, franchising is also influenced by the fashions and sectors of activity that affect the economy.
Translated from www.tormo.com.co
