We have been asked frequently by many of our friends and customers about the potential methods and channels to expand their business. In the coming weeks, we will be sharing a series of articles to help you make some sense of how to build a successful franchising model, its pros and cons, key success factors and some useful tips for those who are exploring franchising as a way to grow your business.
Franchising is one of the common modes of expanding a business. From the perspective of an aspiring business owner, it is also a quick and easy way to start a profitable business with limited downside risk.
Franchise, in its simplest form, is a method for business expansion through a licensing relationship. One of the world’s most famous fast food brands, McDonald’s, began its quest for global expansion using the method of franchising. While a global brand, the vast majority of McDonald’s restaurants – more than 80% worldwide and nearly 90% in the U.S. – are owned and operated by approximately 5,000 independent, small and mid-sized business people.
For any existing F&B owner, franchising serves as a great channel for you to increase existing revenue and break into new markets. While there may be a laundry list of considerations, some of the frequent questions that you may ask include:
- When is the best time to consider expanding my business through franchise?
- How to do get started in developing a franchising model?
- What kind of support do I need to succeed?
- What are the resources required?
- Who should I approach to get started?
To create a starting point for our customers, we will be attempting to answer some of these questions in our upcoming articles. There are several skill sets, factors and conditions that are required to be present for a franchisor to be successful in replicating their business. We will be expounding on a few important success factors of franchising in our upcoming article as it is at the core of our motivation to see our customers grow beyond their current scale.
If you happen to dream of owning your own business but do not have a single clue on how to get started, taking up a franchise could be a viable option. As a franchisee, there is also a unique set of criteria that you would need to examine in order to evaluate the business model before taking the plunge. To better help our customers make an informed decision, we will be sharing our take on some of the key criterions that a franchisee will need to look out to make the venture work.
So join us on this journey over the next few weeks as we dive deeper into the world of franchising!