A business format franchise is where a Company or individual (the franchisor) has developed a successful business model and operating system and then grants the rights to third-parties (franchisees) to operate the exact same business model within an agreed territory or area and with the initial and on-going help and support of the franchisor.
However, for the above to work smoothly and efficiently, the franchisor must have a proven business model for a network of franchisees to replicate. Failing to provide a solid foundation on which franchisees will be asked to build their own businesses is a recipe for disaster.
The franchisor will be responsible for initial and on-going training, support & guidance for each of the local area franchisees and this is typically provided in exchange for a start-up fee and monthly management fees.
It’s therefore very important that franchisees understand from the ‘get-go’ that a franchisor will be keen to ensure that all local area operations run by franchisees follow the system provided by the franchisor to the letter.
This is perfectly reasonable to expect as Corporate Uniformity and strong branding are vital components for the building of a franchised business.
You’ll notice, for example, that all of the trains that are operated within a franchised region are all identical. Similarly, all of the fixtures, fittings and menus in the numerous franchised fast-food outlets are identical. This tends to give assurance to consumers as they can readily recognise familiar surroundings which they are comfortable with.
And for those who aren’t comfortable with following tried and tested routes to market along with operating procedures then maybe ‘doing your own thing’ would be a far better option.
At Ovenu we readily acknowledge & appreciate that not everybody is ideally suited or cut out to be a franchisee.
However, for those who are, let’s dig a bit deeper into understanding what makes Ovenu tick, the trading history, our support team, expansion plans etc. but most importantly of all, what are the benefits to you of working with us as an integral part of our team.