IFA Articles

IFA Articles

REASONS TO OPT FRANCHISING OVER STARTING YOUR OWN BUSINESS

Franchising is where you buy the rights to a business concept, trademarks & know how. In return you pay a franchise fee and a percentage of your profits. You get a number of advantages when you purchase a franchise and they form the reasons for you to choose franchising over your own personal business. They are as follows:
Franchise businesses have a much lower failure rate than other start-up businesses . As you're buying a business concept where most of the kinks have already been worked out by someone else. The business you are franchising is already successful and is a proven idea
The brand name is already recognized and the franchisor will himself consider responsible to promote the franchised name or product, which will benefit the franchisee. Starting a business is taken care which includes include trademarks, easy access to an established product; a proven marketing method; equipment; inventory; etc.
You may have exclusive rights to market the franchised products in your territory.
You will get to leverage on the good name and purchasing power of your franchisor when it comes to sourcing your supplies from suppliers.
Systems are already in place. Franchisors provide their franchisees with various proven systems including financial and accounting systems; ongoing training and support; research and development; sales and marketing assistance; planning and forecasting; inventory management; etc.
Some franchisors will help you finance your initial franchise or may help with site selection , making sure that your business is located in an area where it can thrive.
Franchisee will get benefited from various ad and promotional campaigns from the franchisor which would cost you a great deal to develop these materials on your own.





POINTS THAT OUGHT TO BE CONSIDERED BEFORE BUYING A FRANCHISE FOR ONESELF

IFA makes an attempt to bring to light the Vital Dosí and Doníts that one should inevitably run through before taking up a franchise.

DOs:

  • Talk to and visit as many franchisees as possible.
  • Interact with the franchisor and analyze the past record of the company.
  • Consult as many advisors as you feel are helpful for you, including a consultant.
  • Do ask all possible questions as you can.
  • Take your time. Be very thorough in your investigation.
  • Do comparative analysis of other franchisees in the same and other businesses.
  • Do read and understand the sales literature. Know all the terms of your agreement.
  • Do give yourself plenty of room to manoeuvre financially. Plan for more expense and slower profitability than you think you need.
  • Do ample of research work. The more you know, the better your decision is likely to be. Remember, only you can determine if any franchise is right for you.

DONíTs:

  • Don’t hurry. Taking a short-cut to your research can increase your likelihood of failure.
  • Don’t over-extend your personal finances. Be realistic and conservative.
  • Don’t skip/forget consulting a franchise professional. Saving on fees may deprive you of information critical to making a good decision.
  • Never in a haste settle down with what you get first. Get the business that you want, not the first one that comes along.
  • Don’t take anyone’s word. It’s your money, your risk, and your opportunity. You know the best what you need, so investigate first hand.

THE BENEFITS FOR YOU AS A FRANCHISEE:

  • You own an independent business that deals in a proven & known product or service, and sold under a national name.
  • You can start your own business with limited experience and capital.
  • You buy a proven franchise business, thus you can achieve a significant return on investments.
  • You enjoy high prestige in your community.
  • You are provided with material for local advertising and promotion to supplement national advertising.
  • You are given all the necessary training.
  • You can save through group buying of supplies, equipments, printing etc.

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