What is Franchising?
The word Franchise derives from old French, meaning privilege of freedom. In the middle ages Kings would grant franchises for commercial activities such as building roads and brewing of ale.
Over time the regulations governing Franchises became part of EUROPEAN COMMON LAW. Business format Franchising, which is the dominant mode of franchising today, came into being after the Second World War with the return of the millions of servicemen and woman and the subsequent baby boom.
There was an over whelming need for all types of products and services and Franchising was the ideal business model for the rapid expansion of the Hotel and Fast Food Industry.
Today, Franchising has become a regulated industry, which offers great opportunity to those individuals who truly want to realize their dream of going into business for themselves.
Can My Business Be Franchised?
In order for a business to follow the franchise model, the following characteristics need to be in place:
· Unique – A unique concept that has the potential to expand nationally and even internationally.
· Profitable – the concept must be consistently profitable and the degree of profitability should be predictable
· Systematised – all the operating systems of the concept should be polished and efficient. These systems and procedures should be in a manual form.
· Training – It should be relatively easy to train others in the use of the system and procedures
· Margins – the profit margins should be great enough that every Franchisee that adheres to the system is able to realise an attractive return on their investment
If your business meets the above criteria you have a business that is able to use the franchise model as a vehicle of expansion.
For assistance in the development and expansion of your business please contact Morris Marchetti on +27 82 773 5261 or on email at firstname.lastname@example.org