FRANCHISE BUSINESS HOW TO DEVELOP STABLY?

Franchise business in Thao Dien premises for lease in District 2

1. What is a franchise?

When starting a business, businesses often build their own brands. To gain a reputation in the market requires businesses to have a sustainable development plan. Brand value depends heavily on customer awareness. To achieve that, businesses must go through a stable and long-term operation process. However, at present, in the business fields, there are many businesses that choose to do business by franchising. This form helps to shorten the development process and quickly achieve the desired revenue. Therefore, franchising is becoming more and more popular in many developed cities.

In simple terms, franchising is an agreement between a franchisor and a franchisee that the franchisor will trade in an existing model, product and brand and pay a renegotiated cost to the franchisor. Depending on the agreement of the two parties on the franchise model and the costs to be paid to agree and sign the contract.

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Doing business with an existing brand helps businesses make profits quickly.

2. Franchise models

Comprehensive business franchising: the franchisee will be entitled to transfer the assets of production and business know-how, business products and services, brand system, business strategy model and management methods. The contract period of this model lasts up to 30 years. When the business is transferred, the franchisor will have to pay expenses such as initial franchise fee, operation fee, design cost, store, advertising, equipment purchase, etc.

Business franchising is not comprehensive: the franchise agreement only transfers some assets such as the right to distribute products, the production and marketing formula, the franchise to share the brand name, and the permission to use the existing trademark. This franchising model is applied when the business has a high brand value and has no competitors, and does not want to share its core values. This is also a model that helps to increase the coverage of franchisors and franchisees can also achieve certain business efficiency.

Franchising with capital investment: the franchisor contributes a small amount of capital to participate more deeply in business activities, control the system, participate in the board of directors. Franchising with capital contribution is to help the franchisor understand the business of the franchisee, especially in the early stages of opening a business, there will be many problems. Franchisees can participate in adjustment and support in the business process, also to ensure a stable brand image.

Franchising with participatory management: this model supports the improvement of management quality and experience. The franchisor provides a management department (individuals, groups,...) to manage and operate the daily business activities of the franchisee. For businesses that do not have much experience in managing and operating business activities, this model is essential to achieve operational efficiency, thereby improving the quality of product and service provision and increasing sales. revenue for businesses.

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Many foreign brands franchise business in many regions across the country.

3. What business can franchise?

Popular franchise businesses in the market today include: food and beverage, coffee, retail, education and training, health and beauty, fitness, sports, fashion, bookstore, online franchising, ... There are many businesses with high brand value franchising to expand the system and increase brand coverage to more customers. Businesses intending to do business in franchising are available depending on their business plan, vision and assessment of the long-term stable development ability of the fields to decide on the industry and brand selection to get a franchise.

4. Benefits of franchising business

Franchising brings many benefits to businesses. The first is that the process is significantly shortened. Business establishments during construction, decoration and installation of signs have attracted the attention of passersby. For customers who have used the brand's products, they will wait until the facility opens to shop at the new facility. Next, when operating a restaurant, businesses do not have to spend time researching, testing and adjusting recipes for food or beverage preparation. In addition, the advertising, marketing, store management, ... all receive support from the business transferring the brand. In short, for business people who want fast and stable revenue, this is the right choice. It doesn't take long, but still achieves the expected results.

However, in order to trade in a transferable brand, a business should also learn carefully about that brand, the level of customer favorite, the size and advertising activities of that business. Considering the development potential of the business that needs to transfer is also a necessary factor for high costs in return for high profits. In particular, it is important to note that the quality of the products and services that the business provides.

5. Choose an area to open a business

The location of a business establishment for a franchise brand also has something in common with regular businesses. It is choosing a busy area and recognizable location for business to attract customers. However, care should be taken when there are stores of the same brand in that area because it easily leads to competition in the same system. Should look for business areas where there are no stores of the same brand to create prominence, increase attraction and interest with customers.

The first thing to keep in mind when choosing a franchise is the quality of the product.

Areas with many tenants of Thao Dien are suitable for international brands because most of the population is foreigners. Many locations for lease of Thao Dien business premises have the advantage of a stable source of customers. So, as long as a business has a good business plan, it will quickly own a large number of loyal customers. The business of franchising in the premises for lease in District 2 Thao Dien doubles the advantage for business development. Thanks to the awareness of customers and the source of customers as well as the area where many people come to walk, entertain and find places to eat in Thao Dien District 2.