Franchising is said to be one of the most effective ways of starting a business especially for young and budding entrepreneurs. Getting a franchise – as opposed to starting a business from scratch – is a good way of testing the water because it rids the businessman of the worries of creating a business plan and building a brand. A franchise provides you (the entrepreneur) with a working system. All you need to do is follow it to the letter and as if by magic, your success rate suddenly goes up to as high as 95%.

What makes a franchising business so successful is, as I said, the system. This system has been carefully thought of by the franchisor and is laid down to the franchisee down to its smallest detail.  All the franchisee has to do is do exactly what the franchisor tells him to do because the key to franchising is duplication.

Franchising works best for:

  • Businesses with a good track record of profitability.
  • Businesses built around a unique or unusual concept.
  • Businesses with broad geographic appeal.
  • Businesses which are relatively easy to operate.
  • Businesses which are relatively inexpensive to operate.
  • Businesses which are easily duplicated.

I think it can be said that the most popular business to franchise is anything about food.  Think of McDonald’s and the Philippines’ very own Jollibee.  Both are successful because each franchise is a duplicate of the original.  Food businesses are also relatively easy and inexpensive to operate, have a broad geographic appeal (everybody wants food), has a good track record of profitability and can also bear its own form of uniqueness.

Other businesses that are also good for franchising are health and beauty, education and consummables (ink refill, etc).  They all cater to the needs or wants of people and practically offers services or products needed almost everywhere.

Lastly, franchisees can focus more on the money-making because the franchisors have already focused on the business plan.  A franchisee needs only to sell and the francihsor provides him what to sell.  The franchisee doesn’t need to get dirty most of the time because the franchisor has already taken care of the dirty work.

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