Franchise Talk

Getting Your Name Up In Someone Else’s Lights – Franchising As A Biz Model For Growth

January 22nd, 2010 | Author: Jack

True, the jukeboxes don’t always work, but the neon lights shouting “eat”, the faux red-leather seats, the chocolate malts and the cheesy fries are always the same, whether you’re sitting in an Eddie Rocket’s American- style diner on Dublin’s Dame Street or Limerick’s O’Connell Street.

Why? Because all franchisees in the group – investors who pay to trade under the Eddie Rocket’s corporate identity – must run their restaurant according to a “reference bible” or operating manual, that outlines exactly how all aspects of the business must be carried out.

For some entrepreneurs, this approach is overly restrictive as they will be unable to put their individual stamp on the business. However, the key advantage of sticking to a tried and tested franchise model, rather than starting your own business from scratch, is that it has a much greater chance of succeeding.

In the past, one of the most commonly quoted statistics relating to franchising was that more than 90 per cent of franchises continued to trade successfully after five years, compared to just 50 per cent of stand-alone start-ups. The economic climate has changed considerably in the last two years, though, with some high-profile franchises getting into difficulty. Continue reading this post.

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