In the franchising world, there are basically two types of franchises: Single Unit and Multi Unit. Being a potential franchisee, you have the opportunity to choose between single-franchise or multi-franchise that will of course depend on your capability and most importantly, your capital and experience.
Before, a Single Unit franchise was the main model for franchising. However, a Multi-Unit franchise has become an established option for companies and individuals to grow their wealth as it increase in influence and power over the years.
A Multi-Unit franchise has two different kinds: Area Development where the franchisor provides the number of units that the Multi Unit franchisee will open given the time period in a specific territory; and Sequential Multi Unit, the most common form where the franchisor gives the franchisee the right to open additional units under separate contracts.
Regardless of your choice as to which kind of Multi Unit franchise you will choose, your territory is almost always protected. You will have a franchise agreement between you and your franchisor for each individual unit that you have opened. You will then have a schedule as to when these individual units will open under your agreement.
Although this kind of franchise requires a higher investment capital, expect stability and higher rate of success. A Multi-Unit franchise does not rely on a single location to be successful unlike a Single Unit franchise.
This setup can be a little overwhelming, I know, but your skills of being detailed-oriented, being able to hire excellent employees, being able to delegate daily tasks and being able to decide on important matters will make you a successful Multi Unit franchisee! Not only that, if you are always available when problems need proper attention and when big decisions need to be made, you are one step away to succeed in this type of franchise.
Experience can be a great factor to succeed in this type of franchising. If you have been able to understand how franchising works and you were able to manage your own franchise, this can give you both the advantage and the edge to stand out in your business.
Yes, it is a large business opportunity but hey, the fruit of your labor will be large. Multiplying your efforts outside of one franchise investment can be risky but you are also multiplying your profits.Read More
There are several factors to consider when you buy a business – whether it’s a large or small business for sale, a franchise investment is still one of the best business opportunities in the US. Though a franchise is a proven business that has been popular in the US since just after WWII, you still have to choose as to what kind of franchise you would want to invest in. Should it be a big company or a small company for a start-up business and for a budding entrepreneur like yourself?
We all have to agree that there is no way to prove which kind is better as both have its own pros and cons. However, here are some points to guide you so you may check as to what size of franchise you will most fit into:
Big Franchise System Pros & Cons
1. Offers brand recognition as part of the initial investment
2. Provides continuous promotion of the brand and its company
3. Reliable on proven practices that can overcome any potential damage in the business
4. Agrees to use their intellectual property
5. Requires a big starting capital
6. Promotes advertising campaigns globally
7. Quality training is their top-most priority
8. Provides financial strategy
9. Innumerable employees
10. Has a longer time to evolve
Small Franchise System Pros & Cons
1. Requires only a small start-up capital
2. Offers flexibility in the business operation
3. Marketing efforts can be done locally
4. Needs less initial investment
5. Requires small ongoing marketing costs
6. Ongoing royalties are generally low
7. Customer satisfaction can be greatly achieved
8. Limited territories
9. Lacks financial history
10. Brand reputation can be risky
Apart from everything that was mentioned above, it is mostly important that your franchisor is truly committed to do business with you. He should be able to discuss the resources he can offer you that is needed to open your store. Ask yourself, “is the franchise business model proven?”. If it’s a yes, then you are good to go.Read More
In a start-up business especially in a franchise business, a good and strong marketing strategy is a must to expand your reach and to be successful in your chosen franchise investment. It may be a difficult task at first but all the hard work will pay off once traffic starts to come in.
Here are some guidelines to follow if you have already opened a franchise business. The below strategies can help you boost traffic into your marketing efforts so you can make your young franchise a top competitor!
- Build your business presence online.
In this millennial age, almost everything happens online. Of course, technology is always evolving so your franchise must also keep up with the latest trends. An online marketing plan must be one of your top priorities. Here are a few options:
- Create a website (if your contract permits you to make an independent website)
- Create social media accounts (Facebook, Twitter, Instagram, Youtube, etc.)
- Use a pay-per-click campaign if you must so your business will show first on search engines like Google or Bing
- Encourage online reviews.
Don’t you know that 79 percent of consumers trust reviews online as much as personal recommendations? Yup! That is according to a study by Search Engine Land. That is why online reviews are important to drive traffic in your franchise business. Though you cannot control the type of review they would leave your product, customer feedback is still important so customers can get a feel for the quality of service you provide.
- Create a blog with valuable content.
Want to stand out from both old and new franchises? Create good and valuable content in your blog. Establish your business in the market by posting relevant information about the products or services that you sell. Make it engaging and interesting to your customers so that you may eventually build a following.
- Develop an email campaign for your customers.
This is one of the best ways to stay connected with your clients. Through email campaigns, you can reach your customers all over the world. You may create a weekly newsletter filled with information about the latest promotions that your customers may avail.Read More
Think you got the skills to own a franchise? That’s great! But the next question is, which franchise industry would you choose? Mind you, there are more than 300 different industries and business categories that are using the franchise business system to distribute goods and services, and that’s according to IFA (International Franchise Association).
That is A LOT. But hey, the best franchise investments are in the United States! With that number, you can easily buy a franchise and own a small (or big) business — and I mean REAL business here, guys.
So, I prepared the 10 best franchise industries that you should consider delving into:
1. Food and Restaurant
When did this industry even leave the number 1 spot? Never! This is the most popular franchise category, ever! From fast food, bar, clubs, to café’s, diners, etc. – this is one perfect choice as its opportunities come from many niches.
2. Business Opportunities
As the number two most searched franchise opportunity, this industry simply sells or lease any service, equipment, product etc. that can offer the purchaser a license to run his or her own business. Examples are ATM, check cashing, DVD & video rental, vending, and the likes.
3. Cleaning and Maintenance
Number three business franchise opportunity provides useful and handy services to its consumers. Most families would prefer hiring the services of an expert than doing it themselves because of their lack of time or simply because it’s easier to pay than to do it on their own. This business may include one or more of the following: carpet cleaning, commercial cleaning, concrete and flooring, dry cleaning, grout repair, handyman, home and outdoor lighting, home improvement, house cleaning & maid service, junk removal, lawn & landscaping, painting & design, storage & organizational, tool, and window blind franchises.
4. Low Investments
Many turn to franchising because many people want to become their own boss. Admit it; the reason you want to franchise is that you want to be your own boss too! A franchise investment usually requires low start-up capital and is a very good option for people who don’t have that buying power. Though most franchise businesses offer low investment, it doesn’t necessarily mean that returns are also low. Some buy large multiples of these low-cost investments.Read More
They say that the best way to grow big is to think small. Small may mean “local” and this is one way to run a successful franchise business. Marketing your franchise locally has become a very important tool in acquiring and retaining a customer. It may take a lot of precious time and effort, but there are specific steps which you could take to proactively promote your business and reach out to your customers effectively. Remember, you have to be noticed in small ways.
With a franchise business, it is quite impossible to find some sort of uniformity with branding and customer service with brands that have hundreds of locations. So you have to deal with variety. You may have the same franchise system, but have a different marketing scheme and this is what you want. This would be your edge. This is how you will grow.
Below are tips on how you can exponentially raise the success level of your franchise business through local marketing:
1. Get to know your community.
Research is very important. You have to know the people who will be your core target market. If you are familiar with the area, you will then have an idea about who are living nearby and who can be your potential customers. However, if the franchise is located somewhere you are not familiar with; you have to do your research very well. It is important to consider their age, their traits and/or their way of living. This will help you build a good profile of your customer base.
Do you know the secret to encourage repeat business? Communicating directly with your customers! It also encourages word of mouth. This way, you will be assured that your franchise business remains in the minds of your target audience. Communication is not only face-to-face interaction. You can get their email addresses and send out weekly newsletters so they won’t forget about your service or your product. It is also an excellent way for special offers, new products or services and to encourage click through a visit to your website.
3. Be seen. Be heard.
Local communities often have campaign drives that are open for scholarship or donations. Join them. Most of the time, they will reward your contribution by displaying your brand or your products and services especially your business name for promotion.Read More