What is this all about?
Basically, the idea is for your existing business to be transformed with franchising concepts – Management restructuring, business process and system refining, and re-branding.
Your business premise is re-designed and re-purposed in a way that is most effective (according to the franchise company you partner with.) Your staffs will wear (different) uniforms, and their performance will be measured with different set of rules. In your case as the business owner, you will need to update your business plan to be in concordance with that of your franchisor.
Why would a business owner want his/her business to be branded with a franchise company and be transformed into a franchise unit, instead of an independent business? One answer: Better system = better growth.
Partnering with the right franchise can help your business with a proven system, support team and valuable brand name. Instead of you fighting the competition all by yourself, joining a franchise company can help you with more edge to ace the competition.
A franchise can benefit you with business networking – Consulting with your franchisor and other franchisees (that happen to be entrepreneurs and business owners themselves) can help you existing business to grow better and stronger.
Real life case studies
I have talked directly to the business owners whose businesses are ‘branded’ with franchise companies they are partnering with. I asked them about the impact of this ‘branding’ and I receive mixed replies.
Almost all agree that they have made the right decision, but this could be subjective. One told me that joining a franchise company as a franchisee help his existing business to be more effective and efficient, despite the rising operating expenses in the form of franchise fee and royalties. Another one told me that branding his business with a reputable franchise brand name helps securing more deals as the brand name shouts ‘trust’.
However, there is a case I know that proves to be a failure. Dug deep into the root of the problems, I learned that the main problem is authority and ego. Transforming a business that is built with your sweat and tears into something that you might not like is pretty difficult to some, eventually leading your business to failure.
Nevertheless, I trust and heed them because they have put their businesses at stake to take the franchising route to grow their business beyond their business’ capacities.
From the business owners who have taken the franchising route, we can learn one thing – Franchising is proven to be the best when it comes to business system. However, if you are not ready with all the hassle, the added expenses and the losing of some control to your business, I suggest you to re-think your intention to join a franchise.
Ivan Widjaya
Franchise branding
Image by mallguide.co.za.
