Most Successful Franchises In The World
Posted by Joshua Adekane | Filed under Business
International franchising is much more than big American franchises such as Coca-Cola , KFC or General Motors establishing “master franchise” arrangements in 192 nations.
Most of the international franchises show on a smaller percentage, with countries in the global economy exporting as well as importing.
The International Franchise Association reports that the U.S.-based Arthur Andersen accounting firm, surveyed national franchise associations in 39 countries. These associations were asked to name the number of parent companies and local stores in each country, their country’s total domestic retail volume, and the percentage of the volume that involved franchising.
“The survey found that growth potential for franchising worldwide is increasing at a very fast past. The global market is far from saturated,” said Leonard Swartz who, at the time of the survey , was Arthur Andersen’s worldwide managing director of franchise services.
The franchising giants have their niches where they strongly dominate their markets. Coca-Cola sends a syrup concentrate which is known as its secret recipe to franchise bottlers because it simply cannot ship high volumes of bottles and cans to its franchises. Kentucky Fried Chicken relies on its “11 herbs and spices” secret recipe to send to its franchises all across the world. General Motors has expanded franchises to deal not only in vehicle sales, but also in vehicle financing and real estate sales.
Kentucky Fried Chicken is a franchising brand owned by Yum! Brands Inc. Others are Taco Bell, Pizza Hut, Long John Silver’s and A&W. This is the reason for these fast-food franchise brands always being clustered together.
But in nations across the planet, the main economic engines — in good times or in tough times — are small businesses, including small franchises. People want more than soda pop, fast food and motor vehicles.
For example, there is a demand worldwide for improved education. An American art teacher named Bette Fedder took advantage of this opportunity and started a drawing school in her home. She then compiled a curriculum and began to recruit franchise operators. Young Rembrants now has franchises all over the country and started operations in South Korea, with plans to expand to other international markets . Other after-school tutoring companies have franchises that focus on various disciplines including writing, science and math.
Global Trade means that more orders than ever are shipped internationally. UPS may dominate, but smaller companies are also experiencing strong growth such as P.A.S.S. Shipping and Handling which has 800 franchise stores around the world.
The costs and benefits of becoming a franchisee. You have to pay a one-time upfront franchise fee to the franchisor — anything from $50,000 to open a known pizza parlor to $800,000 for a hotel franchise. You may also have an arrangement that involves a royalty contribution as a percentage of monthly gross sales, and an advertising contribution to the parent company.
Once you’re a franchise owner, all the franchisor wants is for you to succeed Once you qualify, you will receive continual, valuable support and advice.
If you are seeking a franchising opportunity, be careful about companies that describe themselves as “fast growing” as growth can indicate that a company is moving toward success, but can also indicate a growth is too fast and that the company is allowing too many new franchises at once. Look for a franchise with consistent and steady growth.
A sampling of other international franchising opportunities includes computer technology, cleaning products and services, home health care, home improvement, health and beauty, sports and recreation, travel and hotel. Those are just a few.
Joshua Adekane is a franchise consultant. Get more details about investing in franchises, please review Franchise tips and best practices
Tags: Business, business opportunities, export, franchise, franchise advice, franchise tips, import, international franchise, trade, world franchise
An Expert Guide To Franchising Your Business - Part 3
Posted by Payo Hernandez | Filed under Business
Franchising success is essentially built upon finding the right people to be your franchisees. They should be highly motivated to succeed and have the correct attitude with a willingness to fight through the difficult times. Your franchisees shouldn’t just ‘want’ to succeed, it must be something they need.
Your initial fee is going to aid you enormously when separating potential applicants to your franchise. This is because the fee is non refundable under contract so the person has to be really committed and of serious intent to make the franchise work. That’s exactly what you need from each one of them.
Even if someone is there with the money and wanting to buy your franchise you shouldn’t want them unless they demonstrate a high level of commitment, need and motivation towards making a success of it.
Failed franchisees are the kiss of death to your franchise. That’s why we want to choose our people wisely.
The advantage of choosing the right people are many however 2 advantages stand above all the rest. Firstly they are far more likely to have the grit and determination to see the business through to success and secondly they’ll make you a lot more money. Your ongoing royalty rates are a percentage of their earnings so the more they earn the more you do too.
If you considering franchising as a means of making quick money then you really need to look elsewhere for some other kind of business model. Franchising is like a huge aircraft trying its best to take off from the ground. Its takes a lot of raw power to get it up into the air. So be in it for the long haul, build an empire and build it right.
You’re not alone in wanting to franchise and you’ll find that actually there’s quite a bit of help around to assist you if you go looking for it. Make friends with others trying to franchise, enquire to local government bodies for mentoring, read lots of the resources available online… it’s all waiting for you.
The author runs his own successful franchise and writes from personal experience. Please be sure to check out his great product reviews for mens electric shavers and remington electric shavers where you’ll discover lots of information and great bargains.
Tags: Business, entrepreneur, franchise, franchising, start your own business
