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Jan, 05 2015

Tailor made your approach for success in franchisin

One size doesn't fit all. Strategies that have worked for the majority and the masses, at times can be tempting enough for easy adoption to mislead new minds in the game and cause harm instead of the good.

Careful selection, customisation and adoption of the right fit business models, systems, practices and procedures is the need of the hour for the new entrants into franchising to stand out from the competition and ensure long term sustainability and profitability of the channel (franchisee) partners.

Best way to embark the process is to learn from what tailor made and best-fit strategies others have adopted in their businesses that has rewarded them with much sought after success. Take-aways from case studies that follow ahead in this article are carefully presented to serve the purpose.

= An apparel company goes extra mile to target tier II and tier III cities in search of growth:

The investment requirement is carefully trimmed down to increase affordability by bringing down franchisee's investment in stock through shared investment and yet maintaining the wide range of display stock.

Company assists franchisee by providing soft loans to support the investment and low returns in the initial gestation period of business operations.

Franchisee's lack of experience in the apparel business is supported by providing nearly turnkey setup support to the new operations. This opens a wide range of options for the company to choose franchisee partners from by not limiting itself to the group with similar previous experience

= A salon chain prefers conversion franchisees partners over the fresh partners:

Brand actively seeks partnerships with existing and unbranded local salons (qualified for its basic requirements primarily in terms of location and area) instead of setting fresh operations. The fresh operations are not strictly a NO, but given second preference of existing operations

A whole new level of exposure and support is brought to the door steps of the partner in the form of extensive training, managerial support, best practices, customer loyalty programs and industry associations. This approach takes the business to a whole new level by improving average spending per customer and repeat walk-ins.

Services offering at each salon are customised with time to meet local taste and preference of the customers and strengthen the brand positioning.

= A food chain adopts a decentralised model for faster expansion:

Company offers master franchisee at city level (for cities meetings basic criterion) by giving rights and responsibility to the partner to achieve targeted expansion in the allotted city. Master franchisee is required to invest into and operate a minimum of required number of outlets while sub-franchise the remaining target of outlets. Master franchisee acts a representative for the city, responsible for driving the business of self-outlets and sub-franchised outlets

Key reason for opting for Master Franchisee is the opportunity to engage with larger business that provide more sustainability and share responsibility of driving the operational excellence

 

 

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