Author- AKSHITA JHA
INTRODUCTION-
- Understanding FRANCHISE
Lets understand franchise with the help of an example.Suppose you want to start your own clothing brand in some other city or in the same city with some new and innovative ideas which can match the latest trends and can be unique from others and which gives us the authority to get our content the payment rights that is called a franchise.The most common example is celebrities introducing their brand of footwears and clothes.
- Advantages And Disadvantages Of Franchises
Like any other thing a franchise also accompanies itself with many merits and demerits. Commonly known benefits include a ready-made business formula to follow. A franchise comes with market-tested products and services, and in many cases established brand recognition. If you’re a McDonald’s franchisee, decisions about what products to sell, how to layout your store, or even how to design your employee uniforms have already been made. Some franchisors offer training and financial planning, or lists of approved suppliers. But while franchises come with a formula and track record, success is never guaranteed.
CAN FRANCHISE BE CLASSIFIED AS A FAMILY BUSINESS?
Yes, a franchise can be classifies as a family business as most of the franchise these days are either husband wife owned or brother sister owned means two people who are connected to each other via blood start the own brand known as a franchise .In a nutshell all the family owned business are termed as a franchise these days.T
EXAMPLES OF FRANCHISE AS A FAMILY BUSINESS
Some of the Important examples which one needs to understand to understand the criteria’s of franchise as a family business are the innovation of Volkswagen in Germany and Tata group in India.
Pros of a Family Franchise Business
One of the main advantages of starting a family business through franchising is it supplies a built-in business model. Having a model to follow can be especially helpful for families with little or no business experience.
The second advantage is the always included thorough training that franchisors provide to their franchisees. And great training helps you set yourself up for success.
The third advantage of owning and operating a franchise business with your family is branding. Opening a business in your local area that already has name brand recognition can help ensure a strong grand opening, and with it momentum. Having good momentum early on generates revenue, quickly.
Another advantage is you’ll be provided with specific local marketing techniques that have been proven to work. That means you won’t have to waste a lot of money experimenting with marketing and advertising that doesn’t.
Starting and growing a business can be a demanding and time-consuming process. That’s why it’s important for families to be prepared for the dedication and hard work that is required for success. Especially at the beginning.
That’s why, as you investigate franchise opportunities you can involve your family with, it’s important to learn about some of the potential downsides. Here are a few.
For one, if you end up buying a franchise your family will be a part of, one of the things you’ll need to keep top of mind is family dynamics. For example, if you designate one family member as the manager, another family member may feel slighted. “I’m better qualified to run a business. I should’ve been named manager
WE can share more examples of what you may hear as the owner, but you get the gist. And it doesn’t just happen in “family” businesses.
Hence, when word gets around to you that someone in your family is angry about not being picked, or is asked to take on extra work, it will be up to you to diffuse the situation.
Related to the examples above are situations where one family member isn’t pulling his or her weight, and others in the family notice it and get increasingly annoyed. When that happens, infighting ensues. If not corrected, things can spillover to where your customers…who are the bread and butter of your business, start feeling it. That’s never good for business.
CONCLUSION
Summarising The above points it can be concluded that these days all the franchise are family owned business means people sharing same blood are innovating new ideas to start their own brand which has the self unique input.
