Franchising: a rapidly growing business model
Whenever the word "franchise" is
mentioned, most people think of restaurant chains
such as McDonald's, Burger King and Kentucky Fried
Chicken, or shop chains like SevenEleven.
The basic franchise
concept is to let independent businesspersons make
use of a specific business concept within a local
geographic area.
The typical framework
of this arrangement is usually so fixed that the
independent franchisee is perceived as part of the
international chain. People eat at McDonald’s, not
at an establishment run by a local franchisee.
The franchise concept
originated in the US, from where it has spread to
the rest of the world. This combination of an
established business concept and a large number of
independent businesspersons developing their own
businesses as entrepreneurs is now the fastest
growing business model in the world.
Franchisees
Independent businesspersons who establish
businesses as franchisees usually fall
into one of two categories:
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Entrepreneurs, who can
hardly wait to establish their own
business and to whom a ready-made business
concept is a perfect shortcut to
independence. |
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Successful managers in
companies, who wish try their hand at
running an independent business, but lack
a good idea for their own business. |
Franchisees buy into a new or an
established business. A natural part of
any franchise agreement is the right to
resell the business whenever this becomes
relevant.
 Become
a franchisee |
Franchisors
Establishing a company is a stimulating yet
demanding task. Most companies remain small and
local. But some company owners are deeply motivated
by an urge to found a large-scale and perhaps
international business.
As opposed to the
franchisee, the person who founds a business is
often an entrepreneur capable of seeing the
potential of a specific product or business. The
franchisee may be capable of founding a successful
business, but may lack the ability to establish a
large organization as well.
Franchising should be
seen as a tool – a business model – that gives
the entrepreneur an opportunity to proliferate
his/her idea in cooperation with local independent
businesspersons with a knack for running the local
business.
Master franchisees
When developing large, international franchise
companies, it is often expedient to insert an extra
organisational link between franchisor and
franchisee. A master franchisee can be given the
responsibility of building up the franchise
enterprise in a large market area, such as France or
Scandinavia.
The master franchisee
is typically a franchisee himself/herself running
one or more businesses within his/her market areas.
SAM
finds franchisees for your concept
Please contact us for further information
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