Several franchise brand have been existing for a very long time with household names in their various industries especially in the food and retail industry, companies and franchises like McDonalds, KFC, Dominos, Burger King, Pizza Hut, and many more. This companies have led in their industries, earning people’s trust and loyalty but will this company last for long or will other companies and franchises take over.
I have thought of starting a franchise and at the same time I have tried to look at the ups and downs of it. I was talking to a friend about becoming a franchisee and he took me through a few steps and things I need to know before getting a franchise license and signing any document.
First he explained that a franchise I a business which has built its brand and name to its customers and is making good sale. The company opens another branch with the same name, same service and same design giving people the best. As the company improve on their name and brand as well as marketing, it draws the attention of investors and entrepreneurs who want to make profit while riding on the good name and brand of the franchise instead of starting new but in doing this, there are a few things that should be known.
The franchisor then gives license to entrepreneurs who are willing to pay for the franchise,as they learn about the business, industry as well as sign a few documents . The franchise take a percentage of the earnings made by the franchisee and in some cases, the franchisee pays the franchisor rent for the property.
The brand of the franchise is built on delivering consistently all the time, not missing out anything including the tag on the cloths of the employees. That is their selling point and the franchise have to keep their customers loyal to the brand.
He made me understand that the company might increase their royalty at any time and the company could take over the business if I wasn’t handling it well. As a franchisee, the company makes it mandatory to buy from the same supplier, follow a certain standard and rules and if this isn’t followed, one can lose its franchise.
Over the last few months and years, a few franchises are taking charge and making a very strong hold of the industry, companies like La Donuteria (Donut)), Puro Clean (Cleaning Service), Payroll Vault, Scissors & Scotch, Cycle Bar, PokeWorks, Kona Ice and many more. What is your take on franchising, it is a good way to go as an entrepreneur or starting a new business is better.