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One hallmark of an established brand and successful business growth is franchising. After all, the ability to franchise is not something so easily achieved, nor is it something to be taken lightly. It entails a lot of research, including market studies and consultations done with your bank manager, your accountant, an independent franchise consultant and a specialist lawyer well-versed in franchising laws, rules and regulations.
Franchising offers businesses the chance to achieve faster growth and more profits. However, it entails a huge financial outlay, and business owners will have to wait for some time until the franchise network they have established actually starts generating profit.
Another headache that can come with franchising is that as franchise owners operate independently, some might disregard contract terms and take a more casual attitude towards company attire, marketing strategies, corporate décor, and service quality and output.
This is why it is important that the fine print covers all possibilities as you would not want your brand to suffer. You will need to ensure consistency when it comes to all aspects of branding, service and product quality. This can be achieved by establishing a profitable and operational business model, strictly screening franchising applicants, creating a franchisee training center, ensuring ongoing oversight to achieve the desired consistency and getting yourself the right people to help you oversee your franchise – this means having a professional franchise assessor and a legal expert onboard.
• Franchising involves a huge financial outlay and risks
• It, however, leads to faster growth and more profits
• Have a franchise assessor and legal expert onboard
Click on Business at home to get more idea on starting a business
Source: Claire Dangalan, Special to Classifieds
The writer is a freelancer