Selecting the right franchise brand
Sunday, October 23, 2011
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To help you ease into the world of franchising, read the tips below compiled by Entrepreneur.com.ph on how you can land your dream franchise brand:
When you are shopping for a franchise brand, select two or three concepts to your liking. Then write a letter of intent to the franchisor. Be specific about wanting a master franchise and ask for brochures. Some franchisors will provide you with information on the license and other fees immediately, but others will give them to you later. Once you receive the documents, check out the following:
• Franchisor’s record in international franchising: A franchisor with long years in the business will want higher fees compared with those that are new in franchising.
• Number of company-owned and franchisee–owned businesses: A franchisor with more company–owned branches is more credible than one with more franchisee-owned stores.
• Features of the business concept: From the brochures, are you able to identify the franchisor’s uniqueness? Do they allow you to put a value on the concept and to identify the features that will let you position yourself effectively in the market?
After reading about the business concept, study whether there is a market for the concept in the Philippines. If there are companies already offering the same product or service in the country, is there a market segment you could still tap? How big is this market?
Ideally, the concept should be pioneering or first to satisfy a particular market need. But, as a result of the influx of foreign franchises, and the growth of homegrown ones, expect to have direct and indirect competitors. In any case, look for a market segment you could tap for the franchise concept.
source: entrepreneur.com.ph
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