04 Nov Important Lessons and Fundamentals on Franchising Businesses – A Must-Read Overview
One of the learning outcomes from a seminar course on Franchising is the creation of an ongoing discussion between the present day’s consultants and old-time consultants. These seminars also have implications for the current day consultants, and their ability to create and support learning outcomes for today’s older clients.
The purpose of this article is two-fold: (a) to present some of the many implications of franchising for today’s consultants; and (b) to offer the solution of an ongoing, conversational dialogue between these two generations of consultants.
As mentioned above, one of the learning outcomes from a seminar course on Franchising is the creation of an ongoing, conversational dialogue between today’s modern consultants, and yesterday’s historical vendors.
This is an important outcome because, as the author has explained in previous articles, many of the current day’s business concerns, and the corresponding growth strategies, are based on lessons learned during earlier decades’ worth of franchising.
This article offers the first in a series of such articles, which focus on the implications of franchising a business for the current consultants, and how this impacts the present-day consultants. Now if you are based in Singapore, these 10 popular franchises in Singapore should get you started.
It should be noted, however, that while we identify and address the many negative implications of franchising a business, we do not discuss the positive or successful experiences of some of the recent franchisees.
The fact that the author is a former franchisor gives one reason to consider studying what occurred at various company seminars on franchising. Many business owners, especially new business owners, lack the specialized experience necessary to develop sound business strategies and may need to learn these strategies through mentoring or outsourcing.
The author understands that this was a concern for many franchise buyers in the past. As such, he developed a series of videos, which explain the positive benefits of franchising a business, and why it should still be an option today. We will examine some of the benefits that can be achieved by franchising a business:
A successful franchise program often places upon the entrepreneur the responsibility of developing business plans in support of the overall objectives of the franchisor. In many instances, these plans fail, for a variety of reasons.
Some of the failures are due to poor communications from the franchisee, and failure to adequately explain the benefits the franchisor will reap by placing the business under the brand name. However, by preparing a business plan in the early stages of franchising, the entrepreneur has much more control over the direction his company takes.
One of the main drawbacks that startup franchises run into is that they are attempting to tackle a system, which already exists. In this case, the franchise system may be too complex and has too many moving parts for a novice franchisee.
The author understands that there are many benefits franchising provides, and he does not recommend ignoring this important aspect of a business. However, he does recommend that a new franchisee examine the risks involved in putting their business into such an umbrella.
The biggest risk that a new franchise face when they initially decide to enter the franchise system is the “franchise mismatch.” There are many differences that can occur between a successful startup franchisor and a failing one. In this respect, one of the biggest implications of franchising is the potential pitfalls that can lie ahead.
The biggest pitfall in franchising is the mismatch that occurs between a well-established brand and a struggling new business. In most cases, the new franchisee must recognize that the strength of the brand needs to be balanced against the weaknesses of the business model.
The implications of franchising a business are also closely tied to the way in which the business model is constructed. Many startup franchisees realize the importance of recognition and corporate logos in building a recognizable name. However, these are not the only things that create a recognizable name.
For many startup franchisees, the impact of a corporate logo on the public image of the company is the most important thing that they consider. Understanding the implications of franchising a business is also important to business owners considering franchising.
This is because the implications of franchising can vary significantly depending on the specific business being franchised. When there are significant implications of franchising a business, new businesses may be doomed to fail. In some circumstances, this is a good thing.
When there is no recognizable brand or strong corporate branding, a business is more likely to be able to attract customers when it needs them and the startup franchise was able to recognize the need for a consistent revenue stream.
In other circumstances, though, it is possible to have too much franchising and the long-term viability of the franchise model can be threatened. This is why the analysis of the implications of franchising a business should always take into account the unique circumstances of each specific franchise.