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Changed concept of franchsing business!
Franchise! Everybody knows the concept of doing franchising business. But if we go back to the history and compare the current conditions of the franchise industry with earlier one; we can see the drastically changed industry.
Companies who use to make good business, and problems due lack of expertise they can face near in future if they would expand there business; the concept of franchising started. Everyone is familiar with this basic fundamental!! In those cases every company was having reputed name in the market at there individual category of business.
But now, most of the under successful companies starts establishing there businesses through franchise business. Now franchising became a must module to mark your footprint nation-wide or world-wide. Then it doesn't matter how good your business & concept is?? (Excluding some of the companies which can be counted easily on fingertips) Owner of the company launches the franchise module so that they can generate some working capital from Huge Franchise Fees, Royalty Fees. And this cash flow is used to settle there current liabilities.
Nowadays, Franchisee means nothing more than a investor. Investor to help company to come out of there bad conditions!! Investor who is not gonna get any fixed or we can say assured returns on investment.
I am not at all trying to discourage franchisees from starting there own business in franchising world. This is my honest attempt to show the other side of coin. We, everyone see only positive side of the page where all the good calculations, good ROI % is mentioned. But we never see the other side, where huge expenses are gonna occur in future to run the franchised center. Where the franchisee will have to work hard to meet at least breakthrough instead of running in losses. And most of the franchise ventures faces this problem due to hiding important side, and then.... they need to shut the business with a huge damage of brand name in the market. Money?? they make a good money.
Franchisee (an investor) can take few precautions and they can be survived from investing on a loosing business concept. You know what kinda precaution we need to take.
- Check Company background
- Owner Profile
- Business Concept
- Current business of the company
- Latest Balance Sheet
- Complete Projection with Expected Biz
- Written commitment by the company (if Any)
- Hidden Terms
- Current Economic conditions
- And many other things
So enjoy franchising your current business or getting involved by starting franchised business but with good Concept!! Enter into any industry but when your interest is in safeguard.
Prashant Panhale
Franchise Coordinator
V3 - the fitness commune
prashant@v3fitness.com
Companies who use to make good business, and problems due lack of expertise they can face near in future if they would expand there business; the concept of franchising started. Everyone is familiar with this basic fundamental!! In those cases every company was having reputed name in the market at there individual category of business.
But now, most of the under successful companies starts establishing there businesses through franchise business. Now franchising became a must module to mark your footprint nation-wide or world-wide. Then it doesn't matter how good your business & concept is?? (Excluding some of the companies which can be counted easily on fingertips) Owner of the company launches the franchise module so that they can generate some working capital from Huge Franchise Fees, Royalty Fees. And this cash flow is used to settle there current liabilities.
Nowadays, Franchisee means nothing more than a investor. Investor to help company to come out of there bad conditions!! Investor who is not gonna get any fixed or we can say assured returns on investment.
I am not at all trying to discourage franchisees from starting there own business in franchising world. This is my honest attempt to show the other side of coin. We, everyone see only positive side of the page where all the good calculations, good ROI % is mentioned. But we never see the other side, where huge expenses are gonna occur in future to run the franchised center. Where the franchisee will have to work hard to meet at least breakthrough instead of running in losses. And most of the franchise ventures faces this problem due to hiding important side, and then.... they need to shut the business with a huge damage of brand name in the market. Money?? they make a good money.
Franchisee (an investor) can take few precautions and they can be survived from investing on a loosing business concept. You know what kinda precaution we need to take.
- Check Company background
- Owner Profile
- Business Concept
- Current business of the company
- Latest Balance Sheet
- Complete Projection with Expected Biz
- Written commitment by the company (if Any)
- Hidden Terms
- Current Economic conditions
- And many other things
So enjoy franchising your current business or getting involved by starting franchised business but with good Concept!! Enter into any industry but when your interest is in safeguard.
Prashant Panhale
Franchise Coordinator
V3 - the fitness commune
prashant@v3fitness.com
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