Category Archives: Franchising

Franchising – Best Profit Solutions In Marketing

Do your customers love your products & Services & often tell you that you should take your presences nationwide? (Global)

Do you have a unique business concept that if you could just get people to sell it for you know it would be huge hit?

Do you have a great product or service but you are struggling to get / find commissioned sales people that will sell it for you?

There are common questions/ challenges faced by small / medium business owners.

When we try to find strategic Solution to any of above problems one sample solution emerge which answers all above fretrationr for growth the solution ties in franchising our business.

Franchising is a very effective route to expand your business operations in fastest time frame.

Lets see our market place to identify 3 major business brands which are highly successful today in playing a dominant role in the market.

1. Delhi Public School
2. Career Launchers
3. Mothers Pride’s Play School

We know these businesses have grown fantastically taking franchising route to success.
It is very successful at profitable method, why very few small business owners utilized franchise method.
The reasons are given below:-

1- People think it is too complicated

2. They fear they will lose control.

3. They believe it is very expensive

4. They don’t think they have a business that can be franchised.
or
5. Most importantly they don’t know how to proceed ahead. They never got started.

All the above fears are incorrect. The fact is that all businesses can be franchised to grow phenomenally.

There are 10 business areas that make your business ready to franchise route to success:-

1. You need to have good business concept- products/ services. It need not be completely new ideas. Look around to notice how may CAT coaching centers/ playschools are franchised profitably.

2. You need good operational system. This means many of your operations have set procedures/ systems/ methods.

3. Business must be sample to understand. You should be able to teach it to other people in short period of time.

4. Your business needs to make money. If business is not profitable, No point in franchising. You should know if your franchisee can earn at lease 15% profit / return on investment.

5. You must plan by to manage a corporation. You will be managing larger business. So mindset of franchiser and management skills are keys to success.

6. Your business must have some VSP (unique selling proposition) so it looks attractive to investors.

7. Your business must have appeal to people in other cities / regions/ states. The demand of the product must be widespread.

8. Your business plan does not complete with any very large dominant competitor.

9. The inventory used in your business must need finance. You must create financial leverage so it is best to have assets that can be financed.

10. You must be willing to take professional advice you will need to franchise your business.
It is a new give to super success and it has its own rules.

Franchising is a strategic marketing step to expand your business in shortest possible time.

You will be surprised to know that despite downturn in the economy, franchising route to growth has proved successful. Its a winning strategy.

Franchising, Social Media, and the Changing Online Marketing Landscape

The worldwide use of social networking media such as Facebook, Twitter, LinkedIn, MySpace and many others has grown by leaps and bounds in recent years, affecting the business world in radical, unforeseen ways. These online media phenomena are increasingly used by brand owners, their customers and their employees alike as what is now the topmost marketing tool. This article details some of the challenging issues and implications that have gone along with the use of such sites and the particular impact of such issues on global franchising.
We at FGS hope to provide some practical guidance on how social media usage should be managed and controlled in international franchise arrangements. Because of the relative infancy of most social media and their recent adoption by franchise systems, many of these issues have only recently been identified, and the bulk are still searching for a final resolution.
Social media is dramatically changing the fundamental forces of that economy: who pays attention to what, who influences such decisions, how that is tracked and measured, the speed of response, and how it’s monetized. Just as the average prospective customer will check the online reviews for a particular business, many potential franchisees these days are highly web-savvy, and will research a particular business on the web to get a sense of its franchisable status, by its social media presence.
The opportunities in this arena are enormous for franchisors. For a good number of consumers, online communication is now more likely through social media than through email. The commercial potential of this trend has long been surmised, and legitimate companies must take advantage of these opportunities.
The incredible rise of online networking has been driven by younger age groups, but social media are no longer the domain of this demographic only. Consumers from a broad range of demographics are now regular users of social media, although preferred sites will show some variation in their audience.
Social media represent a relatively inexpensive method of (franchise) marketing. However, not all campaigns achieve desired success, and many marketers are still struggling with these relatively new formats. Companies will be better served by listening to customer contributions on such sites as Google Places pages (the #1 source for business reviews online), Yelp, and other user review/ratings sites, rather than using social media as another channel to dictate established brand values. Google now counts the social media conversation regarding your company as the highest indicator of your worth as a business.

Classical Franchising Facts and the New Online “Marketology”

Franchising traces its roots back to ancient China. It is a system for expanding a business and distributing goods and services. It is a marketing method, which has been called by many business experts, the greatest marketing strategy ever created. It is a program that creates amazing opportunities for business ownership, brand awareness and success, and personal wealth.

In the United States, only 8% of retail businesses are franchised. Amazingly enough, these same 8% of franchised businesses do over 40% of the retail sales in the United States. Franchising has the ability to capture much more of the market share. The increased market share is due to three main attributes comprising a franchise:

1.A brand name. Even a newer brand name usually has an advantage over an unaffiliated business.
2.A successful business system. The proven system allows franchisees to follow a successful plan with a high success rate. The franchisee can also enjoy cost savings as a result of the buying power of the franchise.
3.A support system. The franchise will have the expertise of its successful franchisees and franchisor to help them succeed. They are not in business alone.

The Gallup Organization conducted a poll on franchisees’ ownership experience and attitudes. Here are some results:

More than 90% said that their expectations were met, or mostly met.
More than 90% said they considered their franchise to be successful.
More than 65% said that they would have not been as successful if they had tried to open the same business on their own.

Here are some eye-opening social media networking facts, gathered by EPM Communications Inc. (May 2010):

More than 140 million Americans log on to a social media site every month and that number continues to grow.
70% of adults have Facebook profiles.
One-third of social media users are 45 and older.
The majority of travelers visit social network sites to plan and share details of their trips.
Half of those who friend restaurants on social media want to be alerted to deals or receive coupons.

Imagine the number of those folks who are savvy entrepreneurs or business owners (or prospective business owners) who may “stumble upon” your franchise marketing material or companys social media conversation. It certainly spins the wheels of possibility, doesnt it?

Let FGS experienced team of advisors and marketing professionals guide the way toward your franchising success and high-level brand recognition. Call 480-223-1500 for a free consultation today!

Is Franchising Legal Advice Suitable To Help You Find A Franchise

The way a franchise works is you take on the brand of an established business in order to run your own branch.

However you will be required to give a percentage of the profits you make to the parent company, and also to run the business under their guidance and within a firm set of rules.

This alone puts some people off, but if you like the rigid feel of a franchise then it could be the best kind of business to opt for. But before you can throw open the doors for your first day, you have to choose the business you want to work in.

This is the moment where it becomes obvious that specialist franchising legal advice is absolutely essential. Even if you know which area of business you want to go into, you will undoubtedly find that there are several options to consider in that field. For example let’s suppose you want to have a food and drinks business of some kind. In this case you may have narrowed down your selection to three potential franchises. Specialist franchising lawyers will be able to look over each possibility with you and advise you on the pros and cons of each one. Instead of simply signing the contract of the opportunity you like the most, you will be able to see whether there are any legal problems that exist first -for example other problems in the contract with the term of the agreement or with the level of payments expected under the franchise contract.

Even after you have chosen your ideal franchise, there are still other areas where good franchising legal advice can come in extremely handy. For example you will normally need to lease premises to run your business from. Franchising lawyers, or the conveyancing colleagues, can help you here too. Every franchise is different and even if you have run one before you should still seek franchising legal advice before getting into another one. It is by far the safest path to choose, and it can save you a lot of time and effort.

There are other aspects you may need to consult your lawyers on as well. For example you may well need to take on employees to help you run your business. There are various aspects of employment law to bear in mind in this case, and your franchising lawyers will be able to steer you through every situation.

In short, you have to ask yourself whether you can really do without getting the right franchising legal advice.

Franchising Business Vs Establishing Your Own Brand

Several of us are looking to get their own business but there are aspiring proprietors that are still pondering wheter to take a franchise venture or assemble a traditional business. A lot of are dreaming to have a productive business enterprise but only number of of them has their success story to share. You will find two choices in beginning a venture, you can start having your own business name or you can choose getting a franchise venture. Let us try and differentiate the two to help you come to a decision what suites you properly.

In a franchise firm there will be luxury getting aid from your franchising business, you are sure that their name and reputation is already set, you already have your clientele; franchise corporations already earned the belief from their potential buyers, so it would not be tough for you to get their confidence. You will also be provided of everything you need to have starting from seminars for yourself (this may equip you in managing your small business), trainings for your workforce, uniforms, stores, company brand and logo, food materials down to the particularly minor details like the utensils, tissue and so on. You already have a back bone for your business, due to franchising firms are being supported by massive and dependable companies this will guarantee your small business will live, compared to regular business in chich 80% of them close with in their very first year and only 20% survive. Even though franchising business also have rules and regulations, it will be tricky to use your own commercial ideas because they already created a strategy that is definitely tried and tested. Franchising companies are strict with their regulations, you need to sign an agreement in order for your to get the right to use their business name and logo, this will also show your partnership with them and you are also agreed to their terms and conditions.

Taking the risk of setting up your own agency name will take good deal of guts and confidence (and a lot of luck). Beginning your small business from scratch isn’t going to give you the convenience that a franchising business can provide, here you need formulate your own approach that will really work, there will be a great number of trials and errors, it will require time for you to obtain your customers trust due to most of consumers trust a brand or a trademark which is acknowledged or familiar to them. This will not present you with assurance that your business enterprise will be successful, this will depend on your strategies in managing your company. Starting your own business enterprise brand would be risky but when you’ve got the guts to go on together with your battle go forward and do it.

Regardless of whether you chose to own a franchise business or beginning your own enterprise brand, it is all up to you. Verify your knowledge of handling a business and you also have to consider your resources and funds. It is all up to you if starting your own venture brand or getting a franchising company will be a success.

What Is Franchising

You are an unhappy office staff, toiling more than ten hours a day, and noticing playing by the rules does not give you what you really wanted and it only made you old and busy.

Going entrepreneur came into your mind. But, with all those news about traditional businesses closing left and right, the terror stop you from taking action.

However, you find in the newspapers, in the TV and in the internet, firms offering franchising. Maybe this is the type of business for you. And you are intrigued. You ask yourself, what is franchising, anyway?

This blog post will tackle the definition of franchising.

Franchising is a practice where an already established allows another entity to use the company’s already successful business solution. The franchisor (the company that provides the business solution) and the franchisee (the entity that uses the business model) enter into a contract to use and capitalize on the companys successful business model and/or its existing brand awareness (most often called Goodwill) for a faster return of investment.

In return, franchisees expend two payments in general. First is a one time investment, called the franchise fee, and the second is royalty fee, which is a recurring expense, for the continuous usage of the business model, advertising and training costs. Royalty is usually 3-10% of gross profit.

Franchising is a interconnected network of mutual business relationships that permits a number of people to share:

– A brand recognition

– A successful method of doing business

– A proven marketing and distribution system

Thats pretty what much franchising is.

One common misconception about franchising is the phrase, “I am buying a franchise”. You are not buying; you are investing onto the business. What you will own are the physical assets that are needed to act upon the franchise, like the building and equipment.

For a business to work as a franchisor, it must have a good track record of being profitable and the business model it employs is easily duplicable. Otherwise, that business is not suitable for franchising.

What’s so great about franchising?

For the franchisor, the company can grow and gain more chains while lessening the traditional risk and liability of doing so. It is also a great way to gain more brand recognition and reputation.

For the franchisee, they are capitalizing in an already proven business model and recognized brand. In fact, a franchising business is 90% proven to be successful. With a success rate like that, who can go wrong?