Success In Franchising

Vincent Gabriel

Description

This book shows franchisees how to ask the right questions, avoid the common pitfalls, and select the right franchise to match their skills, lifestyles and dreams of running their own businesses.

Drawing from the author's 30-year experience as a food and management consultant, this books provides essential tips for buying a successful franchise.

Topics covered:
- What Is A Franchise
- Types of Popular Franchise
- How to Evaluate a Franchise Opportunity
- How To Avoid Potential Conflicts Between The Franchisee and Franchiser
Interviews with popular franchisers as case studies.

If you are thinking of starting a business through the franchise route, this is the book for you.

Sujets

• Entrepreneuriat
• Business
• Economics
• Employabilité, métiers et formations
• Franchises

Informations

• Publié par: eBookIt.com
• Date de parution: 18 avril 2016
• Nombre de lectures: 0
• EAN13: 9789810727857
• Langue: English

Extrait

Cover
Title
Success In
Franchising
Vincent Gabriel
Published By
Rank Books
www.rankbooks.com
EBook Edition 2012
Copyright
First Published 2008
Ebook Edition 2012
Published and distributed by:
Rank Books
Blk 1002 Toa Payoh Ind Pk #07-1423 Singapore 319074
Tel: [phone] Fax: [phone]
Website: www.rankbooks.com
Email: [e-mail]
ISBN 978-981-07-2785-7 (e-book)
Copyright @ Vincent Gabriel
All Rights Reserved. No part of this publication may be reproduced or copied in any form or by any means – graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems – without written permission of Rank Books.
Conditions of Sale: This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that which it is published and without a similar condition including this condition being imposed on the subsequent purchaser.
While every reasonable care is taken to ensure the accuracy of information printed, no responsibility can be accepted for any loss or inconvenience caused by any error or omission.
Printed in Singapore
Contents
Contents
1 What is A Franchise?
2 Why You Might Consider Taking Up A Franchise
3 Are Food And Beverages Franchises For You?
4 Are Education Franchises For You?
5 Is The Mini-mart Franchise For You?
6 Is The Service Franchise For You?
7 Is The Leisure Franchise For You?
8 How Do I Select A Franchise?
9 Common Areas of Conflict
10 Where Do I Get Help
11 How Do I Find The Right Location
12 How Do I Find The Right Staff
13 How Do I Ensure Good Management
14 Licensing
Chapter 1
WHAT IS A FRANCHISE?
In this chapter:
What are the elements of a franchise
What acquiring a franchise implies

Introduction
This is a beginner’s guide on how you can make a franchise a tool for success. Let us start by taking a definition of a franchise.
A continuous relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing and management in return for a fee from the franchisee. (Source – International Franchise Association)
From this definition the following elements in a typical franchisor and franchisee relationship should be noted:
1. There is a contract or agreement between the two parties
2. The franchisee is allowed to use the franchisor’s brand name
3. There is payment of a fee and royalty from the franchisee to the franchisor
4. The franchisor will provide support to the franchisee
5. A franchise is a continuous relationship between the franchisor and franchisee
6. A franchise is licensed privilege to do a business
7. The franchisee is accountable to franchisor
Elements in a franchisor and franchisee relationship
1.
Contract between two parties
In a franchise, a contract between the franchisor and franchisee basically legalizes the use of the franchisor’s brand name and running of the franchise. (The considerations of drawing up of the contract and the relationship between the two parties dealt with in Chapter 9 ).
2.
Use of franchisor’s brand name
Franchising is another way for the owner of the brand to reach out to many more customers that would not be otherwise possible.
3.
Payment of a fee by the franchisee to the franchisor
Franchisors charge their franchisees fees in various forms.
Examples include:
one-time fee for the provisional licence of one to two years
one time fee for the final licence
fee for training (the franchisee and his/her staff)
fee for monthly upgrading of staff
fee for starter kit for franchisee
fee for consultancy in setting up the business
charges for the supplies bought
charges for teaching tools
charges for enrichment learning tools
charges for banner and signboard
charges for worksheets
royalties for advertising and promotion
royalties for continuous use of the licence
4.
Provision of support
This is covered in Chapter 2 .
5.
Continuous relationship
This is covered in Chapter 2 and 9 .
6.
Licensed privilege to do a business
There are three schools of thought on this topic.
(a) The first school holds that the franchisor has discovered a better way of doing something or making something. For example Subway™ makes better sandwiches than you can or Montessori has a better way of teaching your child. In short you are buying a better way of doing a particular kind of business.
(b) The second school disagrees and argues that given time, you too, can reach the same level of perfection. When you buy a franchise to do something you are buying time. In a franchise situation, you do not have to engage in trial and error to discover a way to do something.
(c) The third school argues that when you buy a franchise, you are buying a universal trade name which most people in Singapore can recognize as being a reputed company or product.
If you do not know how to prepare French fries, you will be taught how to do so, when you attend the training courses at McDonald™'s and by the time you have completed the course, the fries that you churn out will be as good as that produced at any McDonaldTM‘s outlet.
7.
The franchisee is accountable to the franchisor
Buying a franchise is fundamentally buying the reputation of the franchisor. Franchisors do believe that they have much to lose if they pick the wrong person and hence they select carefully.
If a franchisee provides bad customer service or have poor quality control over the franchised products, this irresponsible behaviour erodes public perception of the franchisor.
Shown on the next page illustrates a typical declaration by the potential franchisee to the franchisor.
I understand that the granting of a Franchise is at the sole discretion of the Franchisor.
I understand that the information I am receiving from the Franchisor or from any employee, agent, or franchisee of the Franchisor is highly confidential, has been developed with a great deal of effort and expense to the Franchisor, is being made available to me because of this application, and will be held in strictest confidence.
I will not divulge or use any date, customer or employee names and addresses, techniques, methods, advertising materials, forms, or other information of whatever kind received from the Franchisor without its consent.
I understand that I will have to successfully complete the Franchisor’s training school before I will be allowed to open for business.
I authorize the procurement of an investigative consumer report and understand that it may contain information about my background, character, general reputation, mode of living, credit worthiness and job performance. I understand that, upon written request within a reasonable period of time, I am entitled to additional information concerning the nature and scope of this investigation. I hereby release their officers, agents, employees and servants from any liability arising from the preparation of this report or investigation relating thereto.
This authorization for release of information includes but is not limited to matters of opinion relating to my character, ability, reputation and past performance. I authorize all persons, schools, companies, corporations, credit bureaus, and law enforcement agencies to release such information without restriction or qualification to agents, employees and servants. I voluntarily waive all recourse and release them from liability for complying with this authorization. This authorization/release shall apply to this as well as any future request for an investigative consumer report by the above named firm. I authorize that a photocopy or facsimile of this release be considered as valid as the original.
I understand that the information provided by me will be relied upon by the Franchisor.
(A Sample declaration by the potential franchise to the franchisor)
Within the duration of the agreement, there is a continuous relationship between the franchisor and franchisee.
As you read on, you will be equipped with the necessary knowledge to understand the basics of taking up a franchise and to make that decision to start a franchise.
Summary
A franchise involves the following:
1) contract or agreement between two parties
2) use of a common brand name
3) payment of a fee
4) provision of support
5) continuous relationship
6) licensed privilege to do a business
7) accountability of the franchisee to the franchisor
Chapter 2
Why You Might Consider Taking Up A Franchise
In this chapter:
is franchising a way for you to start a business
whether the franchise will help you to achieve your goals in your business

Introduction
The franchise is a way of starting a business because:
(a) by taking up a franchise, you are taught the necessary skills and methods needed to run the business. This reduces the amount of mistakes common to beginners.
(b) you work with a trade name and a reputation that helps you and the business grow.
(c) since you use an established system, you do not need to spend too much time and resources inventing something that is already there.
When do you buy a franchise?
You should buy a franchise when:
(a)
you want to start a business, but you want it to be as trouble free as possible. You want to have a ‘packaged business deal’ with clear instructions on how to manage the day-to-day operations of your business. You are less of a risk taker, which is why you would rather have a franchise with a lower failure rate than to start up your own business.
You understand that a franchise will not propel you into the Forbes List of Top Business Organizations in the world, but that a franchise is a very realistic and sound business concept even in a competitive environment such as Singapore’s.
(b)
you are committed to quality control. The recognition of a well-known fra