Anche nel franchising è facile essere catturati da convinzioni infondatamente maturate che diventano “luoghi comuni” e che possono comportare confusione e disorientamento, ma soprattutto…errori, gravi e dolorosi errori di valutazione 

Molti sono gli scritti sul franchising che esprimono consigli, suggerimenti, appelli all’attenzione, ecc.. Anche questo blog ha assolto e assolve anche a questo compito.
Devo, però, segnalare che molto spesso gli appelli sono rivolti ai potenziali franchisee, ma molto più rari (e c’è anche un perchè) sono quelli rivolti ai potenziali franchisor. Di questi appelli, un grosso quantitativo sembra veramente che cada nel vuoto. Più che si diffonde l’interesse sul franchising e più che i soggetti interessati non approfondiscono la materia così che la forbice si allarga sempre più…e “la cosa non è proprio una bella cosa”, per niente.
Il risultato è: sempre più mezzi-franchisor, sempre più semi-franchisee, sempre più illusioni e sempre più approcci superficiali.
In tema di consigli e Suggerimenti ai potenziali franchisee, ho trovato molto interessante questo intervento di Ravi Kumar, direttore/fondatore di Franchise Connect (India), pubblicato su LinkedIn.
Può essere ritenuta una analisi completa ? Non importa andare a comprendere questo elemento, l’importante è (sarebbe) intanto acquisire e memorizzare ciò che l’intervento di Ravi descrive e, da parte mia, invece di scopiazzare e appropriarsi della sua opera e spacciarla per un mio elaborato (come molti ho rilevato fare con il mio blog e come molti che conosco avrebbero certamente fatto), ho chiesto ed ottenuto il suo consenso per una pubblicazione integrale di tale intervento. Buona lettura e grazie Ravi.

MYTHS AND REALITIES ABOUT FRANCHISING di Ravi Kumar (Franchise Connect-India)

  1. Myth: Anyone can enjoy success in a franchise business.
    Reality: There are many ways to achieve success in business. While investing in a franchise business is generally regarded by many as “low risk”business as compared to starting your own business from scratch. In franchising success can never be guaranteed and it is never a risk proof venture. Like any other businesses, the success in franchise is dependant on factors such as market condition, training, support, location,the economy and also the franchisee’s skill sets.
  2. Myth: Franchising is best way to earn money.
    Reality: Just like any other businesses before franchise can generate positive cash flow, it is essential for the franchisee to dedicate both time and hard work into the business. Thus it is wrong if you think that by just investing money in franchise business you can expect a profitable return.franchisee must treat a franchise business as your own business and work hard in order to make it successful.
  3. Myth: Investing in top franchise concept means success.
    Reality: While investing in an established and easily recognisable top franchise has its own benefits— the success of the franchise is ultimately dependant on your own skills and competency in running the business. The market conditions may not cater for the top brand in certain locality and these brands may face problems such as pricing and competition from other products.
  4. Myth: High cost franchise means higher return.
    Reality: The hard fact is, higher investment in franchise business does not guarantee higher returns. Higher investment franchises such as the restaurant franchise often require a high capital outlay in fixed assets & equipment. A high investment will result in a longer breakeven point and return of investment — which can be up to two and a half years, and in certain cases up to five years. In reality, some of the businesses may face the problem of running out of stamina —-in terms of cash and resources before they acquire their ROI back.
  5. Myth: Franchising business is less expensive.
    Reality: Comparatively, the start-up costs for starting a franchise business is higher than starting your own business from scratch. Remember, in a franchise business you need to invest money in an appropriate location plus you need to pay the franchise fees and monthly royalties to the franchisor for using their trademark and business model.
  6. Myth: In franchising you will be your own boss.
    Reality: No doubt, you are the boss of your outlet— but as a franchisee, you will always need to work in accordance with the franchise system and you are expected follow the pre-set Standards Operating Procedure for wages, suppliers, the price of the products, norms related to working hours and so on. If you are the type who prefers to innovate rather than to follow, you may find it hard to fit within a franchise system— as there may be a tendency of doing things base on your own preferences. Chances are you may disagree with the system —-and this is the most common cause for dispute with the franchisor.
  7. Myth: I don’t need any help from a Consultant to start a franchise business.
    Reality: The Franchise Agreement is binding factor in the franchisor-franchisee relationship. In Malaysia, the minimum term for the agreement would be 5 years and above. You certainly need to know what are your rights and obligations —-To ensure you understand all legal and financial liabilities it is advisable for you to consult a Consultant or Business Caoch before you sign any documents. This will protect your interests in the said relationship, particularly in understanding the terms and conditions and in identifying what is at stake
  8. Myth:Franchises are safe investment
    Reality: Depends how you define ‘safe’. Nothing is guaranteed in business, and that includes the success of a franchise. As a prospect franchisee, you have to do your own due diligence on the business nature relation to the economic impact in the future. Is the market for your franchise saturated? Do you have the required skill set to run your franchise? Not only franchise industry, but also independent business owner in general has recently gone out of business due to the horrible state of the economy. A percentage of these people were new to the industry, and found themselves out of investment in the hundreds of thousands of ringgit, within only a few short months.
  9. Myth: If the franchise brand is seen everywhere that means they are profitable.
    Reality: This is the most popular of all misconceptions —when it comes to the selection of a franchise business, prospective franchisees are indeed attracted to brands that they can see everywhere. Just because a popular brand, lets just say brand X is seen almost everywhere, it doesn’t mean that if you run your own brand X franchise outlet, you are ensured to be successful.
    In fact, many franchises go under due to mismanagement, or lack of funds. Of course a brand name will get you recognition, but you are still competing against local surrounding franchises and businesses. You are sharing the same market with everyone else within the territory. Additionally a market may become saturated with your product, or you may not have the exact skill set required to run a particular franchise.
  10. Myth: Running a franchise is easy.
    Reality: If you choose franchise business because you thought that running it will be easy, you will get disappointed. Yes, there may be a company system in place to facilitate and organise the management of the franchise—-but still it doesn’t mean it’s going to be easy. There is simply no replacement for good, hard work in any business.
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