Becoming a franchisor
A rapidly growing industry over the last few decades, franchising has set the world on fire with the innovative idea of expanding a business operation by roping in more people legally to market and promote the product. An effective franchising agreement paves the way for improved business performance and consolidates the relationship between a franchisor and a franchisee.
Becoming a franchisor sounds quite simple as it only requires an effective agreement and a disclosure document. However, reality is very different as this decision needs to be taken only after careful consideration and influences some irrevocable changes in the life of a franchisor.
A franchisor needs to mobilize his resources and explore expansion possibilities before arriving at a conclusion. There are several fundamental questions that a franchisor needs to answer:
• How will becoming the franchising affect his current business? • What will be the cost involved in franchising? • What is the time frame for the process of franchising? • How can a franchise help expand business? • What are the complications that exist in the process of franchising? • What are the risks involved in franchising?
The above mentioned questions need to be considered and answered for creating and developing the most effective growth strategy that will benefit the business. The feasibility of what exactly a franchise agreement will achieve and the areas where it will not really impact also need to be taken into consideration before arriving at a conclusion. The strength and success of the establishment depends strongly on the dual roles of efficient management operations and strict quality control.