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Thinking from an investor's perspective, there are many facets where a franchisee needs franchisors to walk through. There is no dearth of investors or potential franchisees from a financial viewpoint, but there are questions that need viable answers
And to answer those questions, a franchisor will have to pitch in and step into the shoes of a franchisee, this will help in bridging the gap. Read on to know more…
PRIMARILY, there are four categories of brands or investors
1. A concept: A brand where a great concept is available, but the investor would be associated with High risk & requireshuge support, in a way a franchisee would be an angel investor
2. One Store Brand: A brand that is just one store young will be at higher risk but with the right support system it can mitigate the risk
3. Regional Brand: These are the brand who are very strong in some regions with an existence of 10-15 outlets/stores, but have negligible presence or consumer awareness in other regions.
4. National Brands: These brands are well established and have a national or global presence where in a franchisee can sustain withminimal franchisor support as well.
Although, having said all these, on a larger landscape every brand should keep focus on methods or ways to hedge the risk associated with the franchisee. Some of the key areas where a franchisor can help the franchisee are:-
To summarise, effectively every brand/franchisor should be ready with the solution and proper support measure to understand how to ease the risk of a franchisee. There is an indisputable question that always looms around in a franchisee's mind “what if the model does not work out?”. A Brand/franchisor should be ready with an ANSWER!!
Pranjal Sharan is a Strategy Consultant - Francorp