Today, the number of people seeking for an international franchise’s opportunity has rapidly increased. Studies show that a good number of corporate companies are operating various branches in different countries. Franchising is an excellent way of enlarging businesses while bringing essential goods and services nearer to the people. This is achieved when franchisors give franchisees the licence to distribute services and goods or conduct business on their behalf under the franchisor’s business name.
It is the responsibility of the franchisor to determine the different services and products that the franchisee is to provide. This is necessary in order to avoid future misunderstandings. A franchisor also offers support, drafts an operating system, and provides a brand to the franchisee. Franchising comes in two affiliations which are:
- Product/Traditional Distribution
- Business format franchise
Product or traditional distribution franchising brings forth more sales as compared to business format franchising. Basically, this format involves the production and distribution of goods from the franchisor to the franchisee. Many times, these products require before and after purchase service. Some products which fall in this category include those from the automotive and bottling manufacturers.
Business Format Franchising
Many people can relate to this type of franchising. Being in a business format franchising requires the franchisor to provide the franchisee with the following:
- Business administration procedures
- Products and services
- Business name
- Development backing and training
- Branding principles
- Business location selection
- Business plan and quality control
Numerous companies, sectors, and manufacturers use business format franchising to promote their products, services, and goods. They include:
- Retail food outlets
- Retail services and products
- Education sector
- Real estate providers
- Health and Medicare providers
What does franchising involve?
While the law is a vital aspect of franchising, the focal point of this procedure involves various factors. First, a franchisor’s vision is to enhance the performance of his brand and increase its value. He focuses on creating brand awareness in as many different areas as possible. Being able to distribute the brand in different countries helps reach numerous people. Additionally, the method a franchisor uses while interacting with his franchisees determines the success of the product. In order to ensure consistency, franchisors should ensure that delivery of products and services to the franchisee is consistent. In summary, the basis of any effective franchising relies on the relationship between the franchisor and the franchisee.
Brands play a major role in franchising
How vital is a brand when it comes to franchising? It is a treasure that can either make or break the business. Customers stream into stalls which offer their ideal brands. As a matter of fact, many customers will travel far and wide just to purchase their favorite brand. Both the franchisor and franchisee should be able to conduct a comprehensive market study. This helps them ascertain the needs and expectations of the consumers. Apart from this, developing a good relationship with the customer helps develop trust and loyalty. Loyal customers will stick to a good quality brand.
Franchising has steadily transformed business operations. Getting an international franchise’s opportunity enables a franchisor to promote his products widely. It enables them to connect and build relationships with numerous people.