Inheriting an age-old legacy from your forefathers in the form of a retail business maybe a dream come true for many. But young ambitious entrepreneurs usually like to lend a modern edge to any venture they take up. Do you also belong to this category? Read on to know how franchising could be that modern edge for your business
Modern retail is synonymous with a better shopping experience for the consumers. Times have changed from those when consumers would accept whatever the local retail shopkeeper offered them. Today’s consumer is educated, intelligent and quite aware of the products and can no longer be hoodwinked by the local retailer. Moreover, the next generation shopkeepers also understand the needs and demands of the consumers better and are ready to offer consumers the best deal. Till a few years back there were limited career options like medicine or engineering. However, with the popularity of business education the newer generation is keen to enter the business world. With franchising proving to be a lucrative option, more and more youngsters are adopting this method to revamp their family businesses and are fast becoming a part of this already proven business format.
Take a visit to your local market and you will realise that every shop has under gone a transformation. This transformation indicates the beginning of a new era in modern retail and franchising has played a significant role in this transformation. Many new generation shopkeepers have adopted the franchise route for the up gradation of their retail stores. Franchising not only gives them a brand identity but also helps them with a smooth store functioning.
Now, one wonders why is franchising the best way to up grade a store. Here we discuss the significance of converting an existing retail store to franchised one.
Brand value: Through franchising, a store gets a brand value. Today, the buying decisions are greatly influenced by brand factors and converting your independently-owned store to a franchised store will attract more customers and give you the benefit of increased sales.
Better consumer experience: Franchised businesses when well researched are successful business models. These business concepts are developed after a thorough study of the consumers’ behaviour. Adopting a franchised business will make your store more consumer friendly and give your consumer a better shopping experience.
Less investment: Turning an already successful and established store to a franchised store needs investment only in terms of infrastructure as the retail space is already there. In addition, people are already aware of the existence of the store.
Easy expansion with franchising: The educated younger generations are well-aware of the benefits of becoming multi-unit franchisees. Expanding your traditional business involves more risks as people outside your region might not be aware of your store and may not be able to draw footfalls in other regions. Therefore, it is always perilous to expand the traditional business. On the other hand, opening multi-units of the franchised outlet can acquire more profits.
Better ambiance and infrastructure: Franchising assures better ambiance and infrastructure. A local shop can rarely compete with a franchised outlet in terms of its great ambiance and services. The younger generation knows the advantages of a good set-up and infrastructure and prefer taking up franchising.
Word of caution
No doubt, young aspiring generation of shopkeepers are convinced enough to convert their family business into franchised business. However, before you take the final decision just consider the following points:
Your franchised outlet, which was thriving till recently, suddenly witnesses low sales as you have a fixed footfall of loyal customers. Having
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Established in 1937, American doughnut brand Krispy Kreme opened its outlet at Hiranandani Gardens in Powai, Mumbai.