Running a Franchise
Discussion
I've got a few Subway franchise restaurants. Pro is you buy the name. Con is you pay heavily for it. If you need the initial support its good. But once up a running you dont really need them.
To be honest the main ingredient to success in this business is location as even some Subway's are making a loss. If you've got the right location, and you can come up with your own concept which is a winner, then you dont need a franchise.
Also a friend started with a car hire franchise, and said it was pointless. They hardly passed him any leads.
To be honest the main ingredient to success in this business is location as even some Subway's are making a loss. If you've got the right location, and you can come up with your own concept which is a winner, then you dont need a franchise.
Also a friend started with a car hire franchise, and said it was pointless. They hardly passed him any leads.
adnaanr said:
I've got a few Subway franchise restaurants. Pro is you buy the name. Con is you pay heavily for it. If you need the initial support its good. But once up a running you dont really need them.
To be honest the main ingredient to success in this business is location as even some Subway's are making a loss. If you've got the right location, and you can come up with your own concept which is a winner, then you dont need a franchise.
Also a friend started with a car hire franchise, and said it was pointless. They hardly passed him any leads.
Adnaan has hit the nail on the head with his first paragraph.
singlecoil said:
The essence of the franchise problem is this- if what the franchise comapany was selling was so good, why would they be selling it? If their idea and marketing expertise was so good, they would keep it for themselves and employ managers to run the branches
I dont agree with that at all. One of the main reasons why companies franchise is due to lack of capital or ability to raise capital. Maybe the managment want to manage, and not get directly involved in retail side. Dont forget some franchises are massive corporations (Eg McDonalds)whose marketing idea and product really are that good (despite current changes). They see the bigger picture that 1% of £1 billion is better than 10% of of £1 million. Its a numbers game and allows them to expand without any borrowing.
Franchising has pros and cons for both sides.
If you want to use someone else's system and sell their product , you are better off getting into a good networking company as the outlay is less and the potential income is much more and you aren't just buying yourself an expensive job. It's a bit of a mine- field though as there are companies that promise much and mislead or exaggerate.
Take care to make sure the franchisors know what they're doing.
Do not trust their reputation, however well known they are, and do some research yourself before you commit yourself. Don't believe anything they say until you can see concrete evidence that the franchise works and you are confident it will work where you want to set up.
I trusted a reputation and came within a whisker of losing everything. It also destroyed my family......
Do not trust their reputation, however well known they are, and do some research yourself before you commit yourself. Don't believe anything they say until you can see concrete evidence that the franchise works and you are confident it will work where you want to set up.
I trusted a reputation and came within a whisker of losing everything. It also destroyed my family......
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