Thursday, October 16, 2008

Thoughts on franchising

Anyone and everyone who thinks they own a unique, successful AND SCALABLE business or business idea wants to develop it into a franchise. There’s no harm in that ambition. There are both positives and negatives. I am not going to dwell on what they are as there’s enough information available on the internet.

What I want to stress on in the Indian context is that Franchising is not about using an established ‘brand’ name to scale operations. Franchisors that have a myopic view of their businesses driven solely with the intention of earning a quick buck will not last long and franchisees associated with them will pay a heavy price. After all how far can a brand ‘name’ take you? A consumer maybe a fool to trust the established brand once, but not twice if the first experience was substandard or bitter. There are enough options out there for him or her to try

Franchising is not about mindlessly lending one’s name, logo and equipment for a fee. It involves a lot more. It requires a more serious investment of time and operations of the franchisee to ensure that the brand promise that the consumers expect is consistently delivered.

Potential franchisees, beware of those franchisors that are out there to make a quick buck at your expense. Don’t be fooled by the impressive marketing stunts and financial projections. Listen to what the layman has to say…listen to what your potential customers feel about the product! Partner those who are willing to support and sustain the brand promise that they communicate to the end customer.

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