How far has franchising stretched?
Franchising is a business model that can prove advantageous for the stakeholder, allowing them to build and expand a business model as though it were their own. The support and guidance that the franchisees receive from their respective franchisors helps them capture and dominate not only local markets but also gives them a high standing amongst competition in the marketplace.
This business plays a pivotal role in the production, promotion and marketing of pre- existing goods and services. While franchising has already carved a niche for itself in the West and other developed countries around the world, it is yet to make major inroads in other parts of the globe. However, research studies undertaken in these areas strongly suggest that franchising is here to stay and that its future looks decidedly bright in many world economies.
Currently, there are franchises to suit all types of budgets catering to different levels of experience. It is the decision of the franchisee to select the industry best suited to them. There are some characteristics, however, that a business needs to possess in order to be judged as an organization with franchise potential:
- Businesses having a broad geographic reach and appeal - Businesses that are operationally simple and easy to operate - Businesses with a profitable track record - Businesses with a unique concept already familiar to the customers or quickly grasped in new areas - Most importantly, businesses that can be duplicated easily.
With more and more mature markets and evolved strategies, franchising has made its presence felt in many a dynamic market and permeated many industries and areas of business.