Article for novice franchisors
Definitions: "Franchisee" and "Franchisor"
If you have decided to create your own franchise, the first step is to choose the right franchisor. In this article, we will explain what a franchisee and franchisor are and how to choose the right franchisor for your future network.
A franchisee is an individual entrepreneur or company that acquires the right to use the franchisor's brand and business model, as well as receiving support in launching and developing their business.
A franchisor is a company that provides the right to use its brand and business model to other entrepreneurs or companies (franchisees), receiving a certain percentage of revenue in return.
How to choose the right franchisor? First, you need to study the market and determine which business areas are the most promising and interesting for you. Then, you can start searching for franchisors in this area.
It is important to choose franchisors with a good reputation and proven business models. You can ask existing franchisees for recommendations and opinions about their experience dealing with experienced franchisors.
It is also important to pay attention to the financial conditions offered by the franchisor, such as initial fees, royalties, and other expenses. Don't forget to consider your budget and possibilities when choosing a franchisor, as different business models require different initial capital, which you will need to spend on opening your franchise branch.
Another important aspect is the support provided by the franchisor to its franchisees. This can include preparing a business plan, training personnel, marketing support, and other forms of assistance.
In conclusion, choosing the right franchisor is an important step in creating your own franchise network. Study the market, seek advice from experienced franchisees, pay attention to financial conditions and franchisor support. A careful choice of franchisor will help you create a successful network of franchise branches and achieve success in business. However, don't forget that choosing a franchisor is just the first step, and further success will depend on your diligence, professionalism, and ability to follow the franchisor's business model.
When choosing a franchise, it's important to consider your goals and development strategy for your network. For example, if you plan on opening multiple branches in different cities or countries, it's worth looking for franchisors with experience in the international market.
It's also important to verify that the franchisor has all the necessary licenses and permits for their business activities. You can also consult with legal advisors to ensure that you are entering into the right franchise agreement.
Overall, choosing the right franchisor is a crucial step that can have a decisive impact on the success of your network or local project. Study the market, consult with professionals, consider your goals and development strategy, and carefully analyze franchise offers. Attend franchise exhibitions and don't hesitate to book consultations. By making the right choice, you can become a successful entrepreneur in just a few months.
Author - Andrii Azarov
Professor, International Business Academy Consortium