The Franchise concept is one of the best ways to expand your business worldwide extremely fast, if you have the right team & procedures to implement the system.This concept is usually used in food businesses but not only there. Now you can find a franchise business, almost in whichever industry you want. Here, you can see the main platform for franchise in Europe.
If you have a great business, but you don’t have the money to take it global or it takes too long to develop the network yourself, maybe the answer is: franchise.
In this way, future partners will benefit from your brand and business, working with you on the expansion of the brand. They will operate the locations and you will offer them support in order to grow.
The main focus of the Franchisor should be to help each partner and his locations (franchise), to be more and more profitable. As they used to say “Happy wife, happy life”, in this case we have: “Happy partner, happy owner”. Work in such a way that your partners will be profitable and wanting to open more locations from your brands.
Why it helps you, if the franchisees (location which have the license of using the brand) make money? Simple.
Most of the concepts make the money from monthly taxes called Royalty Fee, which usually is a percentage from the net turnover, but this is one of the multiple ways of doing it.
One of the huge problems of this concept though and why so many fail is that, usually the shareholders don’t understand that a Franchisor (the term used for the owner of the Intellectual Property) is the business itself. They usually concentrate on a fast return from the owned locations and don’t draw a clear line (for them and the team), between the Franchisor and the Franchisee.
If you are in the process or just thinking of implementing franchise system in your company, come to us for a first discussion. Coffee on us!
#eatble #franchise #consultancy #expansion