Franchise Talk

Franchisees Happily Hit The Ground Running

September 22nd, 2009 | Author: Jack

Franchise models often pose risk of investment and uncertain returns for franchise investors. The common franchise model adopted by most mega enterprises is generally inclined towards monetary benefit as they collect franchise fees.

However, franchise failure rates are higher than we realise and franchisee limitation on knowledge, lack of support from franchisors and inexperience can easily take a franchise venture into a downward spiral.

But all is not lost. The journey can be smooth and fuss-free if the franchisor is willing to go the extra mile.

For example, local brand Chocz has developed a unique model where franchisees gradually take over an existing outlet.

‘For many franchisees, the journey is fraught with difficulty. From finding retail space to training staff, franchisees may find themselves lost in the unfamiliarity of the day-to-day operations of a business. For them to start an outlet from scratch, the risk of failure is high,’ said Benny Chua, director and founder of Chocz.

Having experienced two previous failures in Malaysia with the traditional model, Mr Chua has learnt from experience and adopted a new approach.

‘By allowing them to take over our existing outlets with proven records of existing sales, their return on investment is assured while they can learn fully about the brand and the operations of the outlet,’ he said.

Continue reading this post.

Share and Enjoy: