How to grow your business with the help of franchise | Franchise Business Model
Growing business with the help of franchise is the best idea for anyone who want to grow his brand and business. Franchise business offers two great things first is, it is having minimum financial risk secondly it helps us to grow our business exponentially.
Many businesses have good business model, great product with good quality and service but still they are still lacking behind. To grow their business they need to expand their business with the way which can help them to achieve their business goals more precisely.
Most of the franchisors have proprietary tools, trademark, technology, software, and business process which they are ready to give a person called as franchise so that the franchise help the franchisor to popularise and grow his brand.
In return of that the franchisor will get revenue, profit or the royalty from the franchise.
With the help of franchisor, the franchise will get the product blueprint, business model and operating model.
Franchisee is applicable in almost all the industries such as :
And many more
There are many advantages of franchisee model which are :
No running cost
Economics of scale
The Franchise model is divided into 3 parts :
- a) COCO ( Company owned Company Operated )
- b) FOCO ( Franchise owned Company operated )
- c) FOFO ( Franchise owned Franchise operated )
We will discuss each one of them one by one her
a) COCO ( Company owned Company Operated )
In this model the franchisor will own the company as well as operates it .
b) FOCO ( Franchise owned Company operated )
In this model the capital expenditure is done by the franchisee but the operational expenditure is done by the franchisor itself. In this model Franchisor will actively participate in the process.
c) FOFO ( Franchise owned Franchise operated )
In this model the franchisor will give your everything i.e. trademark, brand, details, Manual process etc to the franchisee and in return will get the royalty or the field amount. In FOFO, the expansion is easy but the risk is so high.
Its up to the franchisee to decide which model he want to implement in order to get the desired results. But never ever pick the franchisee in hurry give yourself some time to select the franchisee which will help you rather than just sleeping and not working at all.