ABSTRACT
If you are going to buy a franchise of any company. If you have a lot of money or you are eager to invest in an industry which already has a good image, goodwill in the market and has a good reputation in the market. Before buying or starting a franchise business the people always have some startling truth which you need to know and prepare yourself for facing these things in future so the chances of your failure in the franchise business in future is decreased and you are able to earn much profit and royalty. In this paper we are going to talk about the startling truth when someone is going to buy a franchise business.
INTRODUCTION
Franchise is the reasonable venture to earn money and establish a good reputation of your branch in the market. If you are going to start a new business then you need to figure out how to start a business and how to successfully market, for all this you need to adopt a franchise of the company and follow the guidelines. The franchise also allows a bigger
Basically, a franchise is the agreement for running a business between the two parties one is the franchisor and second is the franchisee.
The reality of starting a franchise work/business is harder than you think. Because it needs a lot of your hard work and dedication and much investment. Also, it is difficult to franchise.
THE STARTLING TRUTH FOR THE PEOPLE
1. People need to conform with the rules and guidelines
When the person is going to start or buy a franchise it’s the disadvantage that in the franchise you have no freedom to run the business by your way which you like. You are stuck and need to maintain uniformity and also, make sure that everything is consistent with the brand, you are bound with the rules, regulations, and guidelines of the company. These all include the layout of your store, furniture, pricing, decoration etc.
2. People also need to pay additional fees and also bear other ongoing costs
The owner of the brand asks the people or the person who is going to open a franchise that they need to pay a certain percentage of the monthly profits which you earned as royalty.
3. There is no ongoing support
4. The cost of the franchise is the high
When you go to start or buy a franchise you need to bother with a large amount of capital or money because the franchise business needs a lot of cost.
5. There is also a chance/risk of failure
Before you go to buy a franchise business there is no guarantee for success, because in the market a lot of the brands are available and they do not have good reputation and do not have the high goodwill so there is also a chance of failure in the franchise business.
6. There is no SEO strategy specific franchise to your branch
When you buy a franchise of the brand which advertises at the national and international level you may get the benefit from them. But it’s not enough to make your branch highly profitable. If you want to grow and make things at the next level then you need to follow the SEO strategy of the local franchise.
7. Franchise Business requires the hard work
In comparison with other businesses the franchise business requires much hard work. You get the benefit of the brand awareness and not need to put much effort in marketing strategy, but this is not automatically equated to success. The person needs to be driven and dedicated to running your franchise business. It takes a long time to start seeing a return on investment. If the person is not involved by himself/herself in the running of his/her franchise business, mostly in the beginning, then you don’t know how things work. In those conditions the employees can easily trick you and you can’t find the ways for solving the issues and not find the ways to make the processes and also in making your staff more efficient, and also you don’t know what changes you need to make for the improvements to help your franchise succeed.
8. Franchise business takes long time to earn a profit
When you newly start a franchise business you face that the customers and profit will automatically start flowing. Before buying a franchise or starting a franchise business you need to develop a business plan which helps you to set expectations when you are likely to begin or earn a profit. A proper business plan will detail your goals, your operations strategy, marketing objectives of the business, also the financial projections. The person also needs to make some extra working capital which supports your business during the time of ups and downs.
9. The people are answerable to franchisor
The people/person is the boss of his/her branch and also responsible for running and maintaining the profitability of the business. But the franchisor is still the ultimate boss. He/she has absolute control over your franchise business. When you see the most successful franchises are the branches which comply and remain consistent with the brand.
10. The franchise business will grow on you
After facing all the struggle, and when you start seeing more customers patronizing your branch, then you will be able to discover that the franchise model gives you more flexibility in comparison with the other businesses.Once all the things set in your business, you have to right and be able to delegate your authority or give the responsibility for managing your branch to that person on which you have trust. After that you are free to expand, invest in anywhere or also in another franchise, etc.
CONCLUSION
When a person is going or to start a franchise business you need to prepare yourself for facing the challenges while running your business. There are two parties including one is franchisor and second one is the franchisee. The franchise is the resource for starting a business according to the existing system of the business which is run by the franchisor already. Franchising business offers you the chance to manage, own, the business.
AUTHOR – AMAN SHAKYA
