GOAL # 15 : To Launch a FranchiseI can still remember vividly the conversation that I had with my father about the business model called Franchising.
Franchising as a business model is a fairly simple concept to understand. It is when an existing business (which is the Franchiser) is transferring it's knowledge and systems to a franchisee so that person could operate and duplicate the operations of the franchiser. I still believe that franchising is and should be an expansion model for existing businesses to penetrate the market quickly with smaller risk. I'm not a fan of businesses who uses the franchising model as it's primary source of revenue because with this mindset these companies are just out to sell and earn first and foremost from the initial franchise fees and usually leave the franchisee hanging. Second, I also believe that with earning from the franchising fee as a main driver for these businesses there would be a serious lack of creativity for business development. This is already evident on the number of franchised business out there in the market that are very similar in selling proposition, style, price points etc. (related post: Franchise Clone Wars)
I could still remember around 10 years ago, me and my father had a very interesting talk about franchising. I was still in high school back then when I asked if we could get a franchise of a certain company. I can't recall the company anymore but back then I was so sure that the concept was a sure thing. My naive little mind was telling me that we just needed to put in the money and the business will take care of itself because the concept and the system was already provided and there was a ready market. Of course starting a business (franchised or otherwise) is never sure thing.
My father is not totally against the concept of franchising, he is just against getting one. He strongly feels that we could do a better job at being the franchiser than being the franchisee. As I grew older, I understood more where my father was coming from. He did start his own bakery from the garage back in 1983 and started other ventures as well. The entrepreneur in him did not want the easy way out by buying a franchise. He wanted to start his own.
It took me 10 years to understand and here we are today planning and setting out to create a franchise. I have to admit it's not the most original idea but will make sure it will be the best.
Franchising as a business model is a fairly simple concept to understand. It is when an existing business (which is the Franchiser) is transferring it's knowledge and systems to a franchisee so that person could operate and duplicate the operations of the franchiser. I still believe that franchising is and should be an expansion model for existing businesses to penetrate the market quickly with smaller risk. I'm not a fan of businesses who uses the franchising model as it's primary source of revenue because with this mindset these companies are just out to sell and earn first and foremost from the initial franchise fees and usually leave the franchisee hanging. Second, I also believe that with earning from the franchising fee as a main driver for these businesses there would be a serious lack of creativity for business development. This is already evident on the number of franchised business out there in the market that are very similar in selling proposition, style, price points etc. (related post: Franchise Clone Wars)
I could still remember around 10 years ago, me and my father had a very interesting talk about franchising. I was still in high school back then when I asked if we could get a franchise of a certain company. I can't recall the company anymore but back then I was so sure that the concept was a sure thing. My naive little mind was telling me that we just needed to put in the money and the business will take care of itself because the concept and the system was already provided and there was a ready market. Of course starting a business (franchised or otherwise) is never sure thing.
My father is not totally against the concept of franchising, he is just against getting one. He strongly feels that we could do a better job at being the franchiser than being the franchisee. As I grew older, I understood more where my father was coming from. He did start his own bakery from the garage back in 1983 and started other ventures as well. The entrepreneur in him did not want the easy way out by buying a franchise. He wanted to start his own.
It took me 10 years to understand and here we are today planning and setting out to create a franchise. I have to admit it's not the most original idea but will make sure it will be the best.
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