When I tell someone that my business law practice focuses on
franchising, I will at times get a blank stare. This is where I explain that
franchising is a concept where a person licenses out their brand and business
system to another person in order for that person to operate a similar business
under the same name. If I am still getting a deer-in-the-headlights look, I
will say, you know, like McDonald’s. Once the golden arches are mentioned
everyone understands.
However, I was recently reading an online article from
Entrepreneur Magazine about the top franchises[1].
The surprise I took away from this article was the fact that Subway outranked
McDonalds on the list of America
I don’t know the exact ingredients that Subway has combined in
order to make their franchise even more successful than the most well known
franchise in the world. If I were to guess, I would not bank it on the
popularity of Jared as a spokesperson, $5 footlongs, or the innovative and
newest sandwich. Instead, I would guess that, in some way, Subway’s franchisees
are making more money than McDonald’s franchisees.
Whenever I meet with a new startup franchisor, the number
one thing I like to emphasize is that a successful franchise brand is one in
which the franchisees are successful. There are other issues to consider for
success, but a franchise system in which the franchisees have the ability to
make money will grow. Successful franchisees will tell others about the
franchise and franchise sellers and brokers will feel comfortable pushing the
franchise brand over other brands.
Some other factors that go into the success of a franchise
business include: having a teachable system in place; providing the proper
amount of support to the franchisees; excellent training; creative branding;
and good marketing. All of these things will help the franchise system grow.
But when you really focus on these additional items, they all boil down to the
same goal: helping the franchisee turn a profit.
So the next time you want to brainstorm about
expanding your franchise business, first look to your system and see how you
can help your franchisees increase their profits. This will help you increase
the number of franchises in your system. Maybe one day your system will be even
more recognizable than the golden arches.
Franchising is a business relationship to the brand name or the Trademark used ensures a better success rate for a franchise over starting a non-franchised business.
ReplyDeletebenefits of a franchise business
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ReplyDeleteTwo important payments are made to a franchisor: (a) a royalty for the trademark and (b) reimbursement for the training and advisory services given to the franchisee. These two fees may be combined in a single 'management' fee. A fee for "disclosure" is separate and is always a "front-end fee".
We think that the Toppers Pizza franchise is one that’s just right for our friends in Toronto, and we’ve made it a point to actively connect with our customers – who could soon be your customers – and give them what they want: an authentic brand they can connect with and a product that is better than the competition. Right now, we’re looking for partners who want to bring what we have to the masses in the GTA – and not be shy about marketing our products to the people who fit our target psychographic and demographic.
franchise in Toronto
It is surprising to know that MacDonald’s didn’t top the America’s Top10 Franchises list. Needless to say, it shows that you can’t count a franchise’s success just with its popularity. That statement sounds a little absurd but true. The Subway provides a good environment and support for each franchisee, only they weren’t given the same amount of promotion. It might also be that they don’t need it at all. On another note, it is important that you see franchising potentials in a business before making a decision. Never be impulsive with such matters.
ReplyDelete- Lonnie Lisa
Sad to say, according to Entrepreneur 2012 Franchise 500®, McDonald's dropped to rank six while Subway stays on top. Last year, they had 12,546 units in America. On the other hand, Subway had 24,899. I hope McDonald's could make both ends meet one day. By the way, have you seen McDonald's new uniforms this year? They were inspired by Mad Men, if I'm not mistaken.
ReplyDeleteClint Shaff
Opting franchise route for the expansion of the brand is a famous trend these days. Franchising helps in creating an image for the brand and making it a big success. It also helps thousands of aspiring entrepreneurs to be their own business man. It allows small entrepreneurs to be in business for them but not by themselves.
ReplyDeleteottawa businesses for sale
“…excellent training; creative branding; and good marketing.” – These are the 3 vital components of successful franchise business that you must look into. However, without determination and hard work, these three things will not work. You must be completely determined in operating your franchise business and work hard for the success that you want to achieve. ->Fresh & Healthy Brands
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