If you’re thinking of franchising, it’s important to understand why it can sometimes be a successful strategy. Franchising can be a great way to grow your business, but there are some risks involved. If you understand those risks, you can minimize your chances of making a mistake.
The idea of franchising has a special feature that other businesses are not easy to copy and imitate. This makes it a good choice for a dish, a process or a product. And, because the idea of franchising has such a strong foundation, it is likely to continue to be successful over time.
The owners of the franchise system have made a number of mistakes that can affect the franchisees working under them. These issues include failure to follow standard operating procedures, which can make it difficult for franchisees to properly do their jobs.
Many people mistakenly believe that the franchise selection process is not professional or rigorous. This can lead to the selection of people who are not good at running the business or who do not follow the rules.
The franchisor failed to create an appropriate training system for the franchisee. This system should be designed specifically for the needs of the franchisee, from the leadership, executive and mission levels throughout the operation of the franchise model. This is especially important when starting a business from scratch.
Ongoing support includes branding, other marketing and sales support activities as well as programs to maintain and develop strong relationships. If this performance is not maintained, the business model will fail sooner or later. This failure continues if the franchisor is unable to support the improvement of the franchise idea through the development of new products or services or by strengthening the franchise operation.
While franchisors can provide valuable training and support to their franchisees, ultimately franchisees can take on all aspects of their business to succeed. public or not.
Many franchise models fail because the people who run them are not good at managing people. If you want a model run by good people, choose a franchise company led by a few good leaders or hire someone with people management skills.
Franchisees always have to work harder than before when participating in the operation of the franchise system. Franchisees need to fully commit and participate in day-to-day operational improvement for a minimum of 12 months. This ensures the necessary time for the franchisee to understand the operating process and gain the necessary experience to operate the franchise model successfully (especially when the franchisee comes from another industry) before Consider assigning tasks to staff.
Franchisees may underestimate the cost of starting a business. These costs can include the money needed to start the business, such as operating and capital costs. If a franchisee starts a business with too little money, this can negatively affect the success of the franchise. Therefore, the franchisee should make sure to prioritize additional capital for the start-up process.
Consistency in the operation of a franchise is important because it is based on the standards and procedures that the franchisor has in place. This means that the franchise will be consistent in terms of product quality, food, etc. No matter where in the world
VF Franchise Consulting is a uniquely experienced franchise consultancy (brokerage) with extensive franchise sales, marketing, and operations experience throughout Southeast (South East) and Asia Pacific. Our senior management team has over four decades of international experience in the USA, Asia, and Australia. We specialize in franchise sales and marketing, franchise brokering and operations, strategic business planning, general business development, franchise operations, training, commercial real estate, and project management.
VF Franchise Consulting also offers assistance in establishing Distribution partnerships, Joint Venture (JV) partnerships and Direct Investments for international organizations that wish to enter Southeast (South East) and Asia Pacific.
With offices in Vietnam and Singapore, we are positioned to assist our clients enter the fastest-growing emerging region in the world, Southeast (South East) Asia or the Association of Southeast Asian Nations (ASEAN).
ASEAN is a market consisting of over 650 million people and includes the following countries: Vietnam, Singapore, Thailand, Indonesia, Malaysia, the Philippines, Myanmar, Brunei, Cambodia and Laos, and represents 8.8% of the world’s population. In 2015, the organisation’s combined nominal GDP had grown to more than USD 2.6 trillion. If ASEAN were a single entity, it would rank as the 7th largest economy in the world, behind the US, China, Japan, Germany, France and the United Kingdom (UK).
Over the years, we have also built strong capabilities and now cover most of Asia Pacific, including Hong Kong, Taiwan, South Korea, and Japan.
